Don't Pay to Pitch Your Startup
| Oct 11, 09 in Angels, Entrepreneurship, Startups |  3 Comments |
Jason Calacanis is stirring up trouble again. He has started a war against angel investment groups that charge startups to pitch. Calls it "low-class, inappropriate and predatory." Pretty strong words.
It's amazing that Jason just discovered this practice. But I agree with him. Not the low-class, predatory part. The part that startups should not have to pay to pitch to angel groups. I agree. Don't do it.
I my little corner of the technology startup world I see lots of deals. I have talked to over a thousand startups over the past three years. I have seen lots of startups get funded. I have never seen a startup get funded as a result of paying to pitch. Never. That right there is reason enough to not pay to pitch. It's a waste of time and money.
Good startups and good entrepreneurs do not pay to pitch. They do not have to do so. Good deals get socialized across the angel community pretty fast. If you have to pay to pitch something is wrong. Bad concept or bad team. Don't write someone a check. Figure out what is wrong and fix it.
Right on Lance. I think Angel groups ought to ask for a fee, then refuse to hear from the desperate companies that agree to it. And only look at those that refuse. :-)