Small Business Startups–Beware! Part 2
Published by Bob Foster
Last week I wrote about the angel investor scam that Jason Calacanis recently brought to light on his weblog. Jason has now posted Part 2 of his series, which includes testimonials from entrepreneurs who have been victimized, and also comments from a few former employees of some of these questionable operators.
After reading the testimonials in Jason’s Part 2, I am appalled that such a flagrant scam is being perpetrated on entrepreneurs trying to start a business. It appears that this is just another example of the greed and selfishness of unscrupulous business people.
Calacanis also reported that he is now being sued by Keiretsu Forum for mentioning them in his Part 1 post. It appears he is expecting more lawsuits in the future as he digs deeper into this issue. He says he will sell his Tesla, if he has to, to pay his own legal bills.
Jason apparently is trying to get people involved in this issue on his weekly podcast “This Week in Startups.” He is inviting people from both sides to participate, although, after reading his newest post, I doubt that any investors will want to be on his show
If you are looking for startup funding, and considering angel investors, you may want to review Calacanis’s weblog posts first. Part 1 breaks the issue wide open, and Part 2 presents some “smoking guns.” The posts are long, but they could save some people a lot of money.
As I stated in my first post, there are many investors, both angels and Venture Capitalists, who operate ethically and openly—you do not need to pay just to get a meeting with them. You do, however, need to give a compelling reason for them to meet with you, i.e., a great idea, and a well-thought-out business plan.
But remember, unless you are starting a technology company, this is usually not the best source of funding for most small business startups.
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Thanks for the information, Bob.
Judith Ellis´s last blog ..Being Encouraged
Judith – I’ll keep following this issue and post any changes or happenings that I run across.
Thanks for the comment.
Bob Foster´s last blog ..More Bad News for Small Businesses