Should You Pay to Pitch Your Startup?

It's a sign that you're entering hugely, hugely seedy territory if you ever are asked to pay to receive offers of employment, scholarships, or investment. First, <i>many</i> out-and-out scams operate that way. Second, if the opportunity were legitimate, there is an adverse selection risk. Meritorious candidates for employment/scholarships/investment have no interest in paying to get a chance at them, so those candidates would avoid that opportunity like the plague. The decisionmaker, if they have two brain cells to rub together, knows this <i>and charges anyway</i>. Why would you ever take investment from someone who had a declared policy of only entertaining pitches from the bottom of the barrel? (Plus, egads, what does that say about you to follow-on investors or other parties you need to sell?)

When I started my very first web business and didn't know any better, I almost blew $1000 on a couple angel groups that I know with the wisdom of hindsight would have been a complete waste of money. For someone who didn't know any better, it seemed like a good deal.<p>The worse part isn't that it preys on startups, it's that it prays on startups and new entrepreneurs that aren't plugged into the HN/SV scene (I was looking at angel groups in TX).<p>I don't think that a nominal fee (~$10 - $20) is necessarily a bad thing (but really, why bother?), but anything on the order of $100 or more is too much for a startup to be spending on that type of thing- a definite red flag. What investor would want to invest in a startup that spends all of its money looking for financing rather than creating a great product/service?

In general I think pay-to-pitch is highly suspicious, but I'm sympathetic to Graham Lawlor and Ultralight startups. He charges a small fee to cover expenses and make sure people are moderately serious. There's no way he's getting rich off of it. Pizza is included. The feedback and exposure are well worth the minimal cost. If the fee still bothers you, then just don't pitch there.

I'm a VC and these pay-to-present groups disgust me. People who charge pitch fees aren't investors - they're in the business of nickle and diming entrepreneurs who don't know any better.<p>The culture of feedback and mentorship in the valley is what makes entrepreneurship flourish here, decade after decade.

It is not only an East coast thing.<p>I met with the folks organizing Band of Angels in the valley and after multiple meetings and phone-calls they told me that we had been selected to present at their event. It was free to pitch apparently but dinner was $80.<p>I was tempted to turn down dinner and offer to bring my subway sandwich.<p>I didn't end up going... for all the reasons patio11 points out.

I am not a founder looking for an investment (at least, yet), but $50 in USA does not sounds bad for a lean start up. It act more as a filter than as an income for event host IMHO. Founder probably will spend more on a hotel alone.<p>On the other hand, practice of not disclosing fees and charging in the range of $1.000 - $8.000 definitely look shady.<p>Just my .05

That's the kind of crap we have in Chicago. <a href="http://fundingfeedingfrenzy.com/present-your-company/" rel="nofollow">http://fundingfeedingfrenzy.com/present-your-company/</a><p>$330 early bird special... :(<p>That and "entrepreneur networking" events that are full of service companies or software shops trying to drum up business. Lame.

This attitude also exists in other industries[1], and while it is shifty, it's relatively common to the degree where it's not even given a second thought or whimper. This to me is quite unfortunate, especially considering where I am in my life and my economic standing and I can't help but think of all the other people in my position. Really though, the best you can do is hope that there's good people out there that are willing to GIVE you a few minutes of their time, and not charge for it--and then when you're in that position you remember where you came from.<p>[1]Sundance Film festival charges $75 to submit a feature length film for consideration. I've come across many film festivals, writing contests, art shows and the like that charge you to "pitch your work". People are always trying to pick on the starving artist eh? (Callback to PG's Hackers and Painters).

The truth of the matter is that unless you have massive amounts of traction, investors won't really care about your product at such an event. Personal introductions into VC's is the best way to get your funding, and it acts as the first screen of your hustle.<p>If you can't hustle, find someone you know in common with a VC, and convince them to make an intro, you might not have what it takes to launch a startup. (Hint: It's all hustle).<p>Get on LinkedIn, use Meeteor.com, and start uncovering the relationships that can help you. It's not that hard, it just takes effort.

Anyone who pays to pitch their startup doesn't deserve to be funded.

Betteridge's Law strikes again!<p><a href="http://en.wikipedia.org/wiki/Betteridges_Law_of_Headlines" rel="nofollow">http://en.wikipedia.org/wiki/Betteridges_Law_of_Headlines</a>

No.

Easy answer: $0.<p>Anyone who says otherwise generally benefits from the result.

Waitaminute. Paying to pitch?? I thought ideas were a dime a dozen!

&#62; <i>“It’s low-class, inappropriate and predatory for a rich person to ask an entrepreneur to PAY THEM for 15 minutes of their time,” he wrote.</i><p>LOL it's <i>predatory</i>? What exactly do they think the VCs' business <i>is</i>?