You know what really annoys me? When participants in an ecosystem purport to be all about the founders, and supportive of the early-stage companies, but act in an entirely different manner.

A case in point: a company that I’m involved with is looking to pitch at an investor night being organized. Sounds like a good idea, right? Get some smart investors and some smart companies in a room and watch magic happen.

Well, yeah. Except that said organization is charging the companies a percentage of any money they raise, and holding them to that deal for an extended period of time. Essentially the pitch seems to be “our IP is our Rolodex of potential investors, we’ll broker an introduction but you’ll pay the nose through it.”

Last time I heard about something like this it was in a movie about the Mafia and its standover tactics.

If you’re going to be predatory, that’s fine. But at least be honest about it.

Sheeeesh.

Ben Kepes

Ben Kepes is a technology evangelist, an investor, a commentator and a business adviser. Ben covers the convergence of technology, mobile, ubiquity and agility, all enabled by the Cloud. His areas of interest extend to enterprise software, software integration, financial/accounting software, platforms and infrastructure as well as articulating technology simply for everyday users.

2 Comments
  • Can also make it difficult to raise money as many investors make you commit that none of their money is going to finders’ fees.

  • This is ridiculous. Keep looking for a new avenue to pitch. We produce multiple conferences a year and only charge an a registration fee. I would own a private island if I had a percentage of the money raised at my events.

    Don’t let events like discourage you. Keep looking for investors. They are out there in abundance.

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