99.5% of startup fundraising advisors are crooks and charlatans
Vincent Jacobs

Dear Vincent,

I respectfully disagree with the view that you espoused in this article. Admittedly, I am a bit biased as I own a corporate finance firm but we focus on more mature companies and on more complex transactions where our value is more readily seen.

There are lots of charlatans in our industry but there is no subsititute for a good corporate finance adviser that puts the company’s success first before their own commission.

For many entrepreneurs, they are successful in their chosen field but are completely ignorant about corporate finance and in my experience, many investment professionals have taken advantage of this and offered terrible and unsuitable terms to start ups.

A good corporate finance professional can help a new company structure its fundraising so that the funding structures fits around the business’ revenue model whether it is preferred shares, ordinary shares, sharebuyback schemes, convertible debt offerings and many more.

A good corporate finance professional is worth his/her weight in gold and their fees is nothing compared to the value they will save for a company in the long term.

More than qualifications or even experience, firstly, it is best to go for a corporate finance professional who has been an entrepreneur or is an entrepreneur.

Secondly, find out what causes they care about, investigate them, it is very easy to do this on Facebook and other social media portals.

This will give you an idea of this person’s heart because this is what matters for a new entrepreneur, a good corporate finance professional is like a good midwife. After watching the birth of my three kids, I can appreciate a good midwife.

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