Should I ever pay upfront fees to an Angel Investor?
By Venture Giant
This is probably the shortest article you will find on Venture Giant - but possibly the most valuable!
You should NEVER pay a legitimate Angel Investor any upfront money for them to invest in your business. Of course there is nothing wrong with paying for a matching service on an online angel investment network or deal review fee to an angel network group like Venture Giant, but these fees are nominal and cover the service or group overhead.
Though it is very unlikely that you will meet Angel investors that ask you for upfront payment always be diligent.
There are various investment scams taking place on the internet and they are more popular than ever. Be very aware of potential angel investors that you meet on other networks making comments like "I need to have you to commit £thousand in order for my solicitor to prepare the documents to release your funds so I can invest in your business.",
The advantage with Venture Giant is that Angel Investors that meet self certification guidelines will not ask for any kind of fees and we carry out checks on Angel investors that agree to use our service.
As an entrepreneur, whether you find an Angel Investor on Venture Giant, or another angel investment service, you must always carry out your own due diligence on potential angel investors and if they say they have invested in companies before, always ask to see their portfolio with company contact details. You can also carry out company credit checks for a nominal fee.
The best advice remains that if it doesn't feel right in your gut - walk away.
Venture Giant is a premier UK business Angel investment network and small to mid sized business networking portal that matches active business angel investors with entrepreneurs' seeking investment capital and business funding.
Written for and behalf of Venture Giant Enterprises Ltd. All rights reserved 2009
Follow Venture Giant on Twitter