Post a new topic
    3 Replies Latest reply on Feb 1, 2010 2:56 PM by DomainDiva

    Do Angel Investors or Venture Capitalist Cold call?

    yahdmon Newbie
      My question basically boils down to how do/would you know when an investor is for real or not?

      I am new entrepreneur, loving the life and would do it if all my bills were paid and I did not have to work. Just launched my first venture, many more to come... Anyway, I got a call, then a letter from a VC offering several million bucks, claimed they saw my company and want to come on board. I have been in communication with them since, and is planning to meet them but they are very secretive.

      How can I tell if they are real or not? What are the characteristics of these types of persons or entity, for my benefit?

      Thanks in advance for your input?

      I am really appreciating this resource... thanks BOA.
        • Re: Do Angel Investors or Venture Capitalist Cold call?
          phanio Pioneer
          Yes, VC and angel will cold call you if they think your business has potential. Just do your homework. Find them in the BBB - look at their portfolio companies and contact them to see if they are legit. Contact other VCs to see if they know them. You could even contact the NVCA or similar associations to see what they know.

          Also, if they ask you to pay up front or pay at any time - run away. Lastly, use your gut - that will be your best barometer.

          Business Money Today

            • Re: Do Angel Investors or Venture Capitalist Cold call?
              yahdmon Newbie
              Thanks... god stuff for sure. I never thought of contacting BBB.

              Interesting thing is that these people are non-existent on the web and so I am leaning towards them not being legit or have a motive, just wasting my time but I will do the other things you mentioned... there is a controversy with the gut check though because you know, my gut wants it to be true.

              Thanks for your help.
                • Re: Do Angel Investors or Venture Capitalist Cold call?
                  DomainDiva Ranger
                  There are companies that scour the web and other sources for potential. However, if your potential investor has NO WEB PRESENCE and you can't do any background on them by typing their names into Google or Bing, then tread with extreme caution. If I had 100.00 for every person that offered me money during the last 3 years I would be more than happy.

                  Cold calling or initial contact by a legitimate VC or angel is etremely rare and anyone you deal with should be viewed with a cynical eye.

                  We are in the VC process right now, if you need help, my contact info is on my profile. BE CAREFUL!!!