Startups · Entrepreneurship

Key red flags for startup investors?

Richard Tan Internet Marketer, Social Media Manager, and Freelance Writer

September 6th, 2016

Is there any red flags that you recommend looking out for when you are doing fundraising? I understand that divorcing an investor is almost impossible...

Alejandro Cremades Author of The Art of Startup Fundraising & Serial Entrepreneur

September 7th, 2016

Here are my top red flags. If you identify one of them coming from an investor run in the other direction.
  • Time wasters
  • Lack of experience
  • Asking for far too much
  • Offering too little
  • Too pushy
  • Introducing new clauses on offering docs last minute
  • The investor behaved poorly with a failed portfolio company