This post originated from an RSS feed registered with Java Buzz
by Fred Grott.
Original Post: Investor Book Presentation Scam
Feed Title: ShareMe Technologies LLC-The Mobile Future
Feed URL: http://www.jroller.com/shareme/feed/entries/rss
Feed Description: A Weblog about Java programming and digital convergence on mobile devices in such areas as P2P and collaborative technology.
This is a description of red flags ona an investor book presentation scam often pulled on developers and in now way takes away from a valid investor book presentation made at the Series funding meetings. In this case I am referring to the scam played at before the prototype is coded stage.
First warning flag is investor book presentation being prepared before a prototype is coded. Why? At this stage normally funding for the prototype comes from 2nd mortgages and home equity loans not VCs as VCs are looking for a prototype at their presentations. Also, normally the middle party is getting paid for preparing the investor book presentation(at $45,000 to $85,000) which means that the developer evaluating technology for such a presentation should get paid.
Second warning flag is after signing the NDA that you get no context disclosed in order to do the technology evaluation. Along with that warning flag no disclosure of who else is on the team.
Third warning flag is the amount of time the middle party holds a series 63 license not matching fund raising story claims of the middle party.
As the saying goes, vote with your feet developers.
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