Last week I was on twitter and I saw a complaint from a founder. Here was the complaint: “I could be wrong, but… if you’re an angel investor who has the means to write a lot of checks, don’t drag a pre-seed founder through Series A-level due diligence for a $1000 investment. If you love the founder/team and the opp, write the damn check or move on.”

There are several things to note about this. First, this founder was looking for money anywhere. They are a pre-seed company willing to put tons of investors on their cap table. This is a hugh red flag to future investors.

Second, the assumption that if you have money (means), that a pre-seed company is entitled to it. This is an investment, not a gift. This is an investment, and not a bank. It’s terrible that a company would think that an investor is just supposed to give them money just because they have an idea. No customers and probably no MVP.

Third, the assumption that the investor had no right to check on anything. Are we just supposed to take your word for it. Investors have various levels of diligence. If a founder does not like it, what does that really say about them.

Fourth, that the only thing that’s required to raise money is to love the team and the opportunity. The attitude of “write the check or move on” shows what? You are capable of handling $1000.00. Your idea is so great that the $1000.00 is going to get you to the next milestone.

As an investor, you should gather enough facts and evidence about the company to make a comfortable and rational investment. Then comes the person part. Depending on where you invest, this could fail or take 10 years. Would you really want to be connected to a founder that is so entitled?

P.S. As a founder, you probably shouldn’t be chasing after the $1000.00. Those are the most high maintenance investors you will have (look at the crypto space for an example of this).

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