on October 9, 2009 by Justin in Uncategorized, Comments (1)

Re: Why startups shouldn’t have to pay to pitch angel investors

In response to  Why startups shouldn’t have to pay to pitch angel investors

In general I agree with Jason’s view-point – however I do see a couple of shortcomings.

For example… following Jason’s arguments, people who run speed dating events shouldn’t charge an entrance fee… But, it takes time and effort to set that kind of event up why should absolutely NO fees be charged?

I agree with Jason that exorbitant fees should not be charged – but surely sometimes some fees are justified just to pay for the administration costs and room hire-out? Annnnnd, it also brings value to the table to bring all those people under one roof.

But more to the point…!

Given how Jason feels that startups should NEVER have to pay to be in a room full of investors – then why charge $1500 per ticket for Techcrunch?!

Surely all the budding entrepreneurs should get into Techcrunch for FREE!!!

After all that $1500 could go along way toward their start-up right?

but they chose to give it to Techcrunch in order to network… (i.e, in the case of Techcrunch people see value in giving a large chunk of money to be in a room with lots of investors and well networked people)

1 Comment

  1. Josh

    October 12, 2009 @ 2:42 pm

    There’s a difference between paying fees to a conference in order to attend and in someone who is a potential investor in your startup charging you money to let you pitch. In the first, you are receiving value — attending an entire conference in which you can network, attend panels, etc. In the second, you are giving angels an opportunity to invest in your company.

    Coming out of Hollywood, there are similar leechy companies that charge you money. As Jason mentioned, there are some “talent agents” that charge you money for acting lessons, headshots, etc. And there are people that do that for wannabe screenwriters and directors as well.

    If someone is investing in you, they give you money. You don’t give them money. Simple as that.

    VC firms don’t charge you to pitch them. Banks don’t generally charge you either.

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