Rich people charging poor entrepreneurs to pitch them?
Jason Calacanis, CEO Mahalo.com, web entrepreneur and blogger, has taken on a personal mission to expose angel investor groups that charge startup entrepreneurs a fee to listen to their pitches.
It's a great rant of a post where Calacanis threatens, with the help of his supporters, to expose every single one of these groups. Calacanis explains:
Yes, you heard that correctly: the rich people (angels) are charging the poor people (startup entrepreneurs desperate for cash to fuel their dreams) to hear their pitch. No, I’m not kidding. This is actually happening — and it’s widespread.
Last week, a number of the TechCrunch50 companies informed me about firms calling them to present at their “Angel forums” — only to discover that they would face fees ranging from $1,000 to $6,000 for a
10-15 minute pitch slot. After additionally investigation by the Jason Nation (the top 10% of the maniacs who follow me on Twitter), I was sent details of one epic bastard that wanted $10-$25,000, plus a couple of percentage points of the value of the deal (you’ll find out who later in this email).
When I heard this, my blood started to boil immediately. So, I did what any maniacal, self-absorbed CEO from Brooklyn would do: I started a jihad against this dispicable form of payola and the people doing it. It’s on people … it’s on like a Donkey Kong.
Alright startup folks -- has anyone around here ever felt forced to pony up some cash for investors to listen to your pitch? What do you think of this as a practice -- smarmy or just the way the world is?
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