Investor pitch · Angel investing

Is "Pay to Pitch" considered predatory today?

Tico Ballagas

May 15th, 2014

What is the current thinking on "Pay to Pitch"? I remember Jason Calcanis' rant on the subject from 2009,
http://calacanis.com/2009/10/09/why-startups-shouldnt-have-to-pay-to-pitch-angel-investors/

but VA Angels in Canada is asking my co-founder for $1K per pitch for a series of 5 pitches, which seems pretty outrageous to me. Would love to hear your thoughts.  

Brian McConnell

May 15th, 2014

Run, do not walk away from these bozos. The odds that you will see a penny from them is approximately nil. Not only will you not raise money from people who are advertising they are so risk averse that they want you to pay them to pitch, you also risk getting pegged as a rube (aka sucker) by reputable investors who would not engage in shady practices like this.

William Grosso CEO, Scientific Revenue

May 15th, 2014

Ridiculously predatory. Bill ---------- Bill Grosso CEO, Scientific Revenue www.scientificrevenue.com professional: bill@scientificrevenue.com personal: grosso@gmail.com

Robert Clegg

May 15th, 2014

So if it's a fee to discourage no shows ... uh, wouldn't you get your money back if you showed up and pitched?

Robert Clegg

May 15th, 2014

Keiretsu Forum charges 6k for 4 pitches. it's the world's largest angel network. if you go to due diligence, there's very high funding rate.

Matt Farnell

May 15th, 2014

You should never pay to pitch. I just checked thefunded.com (yelp for investors) for VA Angels and they are not even listed.

Tim Scott

May 15th, 2014

So if it's a fee to discourage no shows ... uh, wouldn't you get your money back if you showed up and pitched?

Good point.  A slip of the disguise perhaps.

Yasmine Mahmoudieh

May 15th, 2014

Good business concept for him! Not correct from my point of view! Best yasmine yasmine mahmoudieh myKidsy ltd techhub@campus 4-5 Bonhill Street London EC2A 4 BX +44 7540136273 www.myKidsy.com www.mahmoudieh.com

Tim Scott

May 15th, 2014

We were in VA Angels pipeline, and they seemed quite interested in having us pitch. Maybe it helps I'm a dual citizen. However, when we learned of this fee we balked. They explained that the demand to pitch is high, and they use the fee to discourage no-shows.  Whether it's scammy or not, it's a non-starter for us because the travel to get around to 5 cities plus $5k in fees.  No thanks.

Suzanne Noble Founder of Frugl | Power Connector | PR Expert | Mentor

May 18th, 2014

I have paid to pitch but not at anywhere near that level! £50 is the most I have paid and I consider it to be about gaining experience of pitching as much as about raising investment (although the latter would be great!). Mostly I have been advised not to pay by experienced investors and entrepreneurs. If an angel network really likes what you have to offer, they will invite you to pitch. It should be as simple as that.

As far as angel networks go, I have to agree with Paul. Angel networks are nothing to do with philanthropy and just about trying to gain above the average returns. Without wishing to plug myself, I have written a blog post about my issues around angel networking here if anyone has 3' to hear my thoughts. 

Jeb PhD Decision & Data Scientist / Experimental Psychologist / Business Intelligence

May 15th, 2014

Depending on where you're at right now, there are cases where it may be worth the money as a live training exercise.

Otherwise, as a matter of principal I try to avoid doing business with anyone who designs perverse incentives.