Hey everyone,
I wanted to ask something about raising funds for a startup.
Recently, a few people who call themselves investment brokers have approached me saying they can connect my startup with potential investors but they’re asking for a small upfront fee 1% percentage once the deal is closed.
I’m not sure how legitimate this route is. Has anyone here gone for investment through such brokers or intermediaries?
- Are they actually helpful or just middlemen trying to make quick money?
- What’s the right way to verify if someone is a genuine investment broker?
- And should a startup even rely on brokers to get investors, or just approach VCs and angel networks directly?
Would love to hear your thoughts and experiences before I make any move.
Is it safe to go for investment through brokers?
byu/New-Bake3742 inEntrepreneur
Posted by New-Bake3742
3 Comments
Be careful..most investment brokers usually ask for upfront fees, surely are red flags. Legit ones usually get paid only after the deal closes. imo you should ask for their past deals, client references, and check their LinkedIn or firm background. tbh you’re better off pitching directly to angel networks, accelerators, or startup platforms.. at least you know who you’re dealing with.
Hi,
My advice is to be cautious with brokers who ask for an upfront fee. Often, they are just middlemen and cannot guarantee that they will actually connect you with real investors.
In my opinion, it’s safer for startups to reach out directly to VC funds, angel investors, or startup networks. If you do decide to work with a broker, make sure to verify their track record and professional credentials first.
No! Stay away from them.
If brokers were really helpful or a valuable resource, then most investors would be asking founders to use them. And yet, zero investors do that.
Investors want to hear directly from the founders and not an intermediary.