Where can I touch base with honest, dependable venture capitalists without those horrendous charges?

Question

Seems everywhere we go, people offer to help you locate investors, but not without charging outlandish fees, and sometimes getting bogus or mis-interpreted information. Is there a chance for us? We'd really like to meet honest investors somehow, not through some pay-through-the-nose website, or some ritzy convention. Thank you.

Answer 1

One of the problems is that "private placements" cost $20-$30 thousand to perform. This is because the guy that writes the PP puts his name on the paperwork and is legally liable if he made a mistake. Part of his job is, of course, is to formally instruct the company of its responsibility to comply with the instructions.

Anyway, this is important because this is what it takes to enable a company to advertise, accept investment from many individuals, and "secure" that investment.

If "Joe" were to advertise as an investment company, collect investments from individuals, and then invest in your company without going through the prescribed proceedure, he would probably go to jail or something.

If "Joe" wanted to invest his own money in your venture, he'd want to know what happens if something goes wrong.

The laws are in place to protect peoples' investments. This does create a barrier to entry, but we just have to be up to the challenge of meeting these expectations.

Answer 2

You find honest and dependable venture captialists by first having your own finances in order. If you cannot prove that you can properly handle your own money nobody is going to trust you to handle theirs.

Many of these so-called venture capitalists are really people who are scam artists who capitalize on your inability to borrow money from the bank. They get away with it simply because they will claim that they were able and willing to make the loan but you were not able to meet the requirements.

Getting a business loan is a long process where you must develop a relationships, trade accounts, and a track record before anyone will truely give you a loan.