I’m getting email now from several new “list-your-startup-for investment” sites on the Web. If you’re not familiar with these, there are several. Generally you pay to have your new business listed there as an investment opportunity. You’re hoping an investor will find you there, contact you, and eventually invest.
One of these listing sites asked me to put a link up on this blog, and offered a 50% commission for anybody who follows that link and signs up.
Sorry, no deal. True, there are ads on this blog, but they are controlled by the people who pay the bills.
I’ve met some honest and well-meaning people offering listing services, and charging money for them; but frankly, I just can’t believe that works. In my mind, people who have money to invest, and people who are paid money to manage other people’s money by investing it, don’t browse websites looking for places to put their money. Instead, people who have companies needing investment seek out the investors. There’s that whole matter of contacts, introductions, who do you know, and all that. In short, the deals chase the money, not vice-versa.
Maybe I’m wrong on this. Some venture capitalists run great blogs, and if you ask them, they say that one of their purposes is “deal flow.” So that contradicts my basic assumption. I did learn once of a venture that was funded through one of these listing services; that was five years ago, that service no longer exists.
But I am not putting any listing service on this blog, that’s for sure.
Tim Berry is the founder and chairman of Palo Alto Software and Bplans.com. Follow him on Twitter @Timberry.
