I've met with a Venture Capital investor who requires that my start-up company pay for 50% ($25,000) of their Due Diligence costs up-front before they proceed.
Is this the regular format of Venure Capital investments or is this irregular or even a scam.
I want to move ahead and benefit from the investment, but is very resistant to pay the money incase this may be a fraudulant/scam investor.
Please help and send advice.
Is this the regular format of Venure Capital investments or is this irregular or even a scam.
I want to move ahead and benefit from the investment, but is very resistant to pay the money incase this may be a fraudulant/scam investor.
Please help and send advice.
posted by:
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Atlanta
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Re: Up-Front Due Diligence costs
Wed, January 19, 2005 - 12:14 PMSounds like a SCAM. Never hear of splitting the Due Diligence costs.
