I totally agree. If angel investors charge you to pitch to them what does that say about the potential advisory/mentorship relationship down the road? Not something I would want to be a part of. Really makes the whole process feel cheap by putting a price tag on a pitch.
Here's a great video of the Rackspace founders and mentors of Capital Factory (seed stage startup accelerator in Austin) giving some practical advice about finding and pitching to the right investors.
I totally agree with you Derek. $1500 is ludicrous. Entrepreneurs are giving 'investor's a favor by offering them an opportunity to invest. They should be the one's paying entrepreneurs. Not the other way around.
I agree. Outside of nominal fees for things like processing an application (maybe $50-$100), the investors should see the rest as a cost they have to incur in order to have the opportunity to invest in your venture. Of course as you well know, there will always be entrepreneurs who are desperate enough that they will pay anything and investors who are tight enough with their money that they will charge anything they want.
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July 21, 2010 at 3:21 pm
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