Maybe I'm a bit selective, or as my wife says, obsessive, about certain things where I pay extra attention and stay disciplined.
I don't know about others, but these are my red flags.
Some are instant 'no's for me, while others, when combined, raise big concerns.
1. Trust Breakers:
• Demanding NDAs before basic meetings
• Hiding cofounder relationships
• Lacking basic transparency
= Instant pass
2. Communication Red Flags:
• Using assistants for investor emails
• Ghosting for weeks/months
• Aggressive or irregular responses
= You're not ready
3. Founder Problems:
• Side jobs during fundraising
• Passive cofounders with high equity
• Co-CEOs in early stage
= Fatal structure issues
4. Money Mistakes:
• High burn rate, no path to profit
• Luxury spending + high salaries
• Unrealistic 5-year projections
= Poor judgment
5. Tech Issues:
• Missing technical cofounder
• Outsourcing core technology
• Agency-built MVP
= High risk
Remember:
Every red flag chips away at trust. Be proactive, transparent, and 100% involved. Investors bet on YOU as much as your venture.
Which of these 🚨 red flags surprised you the most? Drop your thoughts below!
#VentureCapital#StartupAdvice#Fundraising
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