It’s like those cheezy rip-off “talent agencies” that prey on wannabes and charge them ridiculous prices for head-shots, coaching, etc., but never find them any work, because they aren’t really talent agents, they just suck your $ and send you off when it’s gone. Or then there’s the “we’ll help you patent your invention” TV commercials… again, all these greedy MF’s do is overcharge you for doing not much, if you’re lucky, some of them steal any of the ideas that are actually any good.

Besides being a total rip-off, my personal issue with these pay-to-play scams is that they give false hope to people who are just trying to follow their dreams, and instead of being honest with the dreams that need some more work, they coddle them, encourage them, and then scam them.

The “con” in con man is “confidence.” They gain your confidence first. Your expose will help prevent some of that false confidence, I hope.

Here’s the secret investor’s don’t want you to know: there is more money than good ideas. Even in these recessive times. If you build a better mouse(-trap) the investor world won’t necessarily beat a path to your door, but they will listen to your pitch, for free. At least the real investors, with real money, looking for real entrepreneurs with real ideas for viable companies.

I used to joke that the difference between Northern California and Southern California is than if you go into a starbucks in SoCal, everyone is working on and talking about their screenplay. In The Bay Area, it’s their biz plan. So, just like there have long been sleazy hollywood types who just want to prey on your dreams, there are now the tech equivalents ready to make money by misleading eager tech wannabes. And guess what, some of those wannabes just might have the next YouTube, Facebook, or Twitter.

So, all you tech dreamers, dream on. But don’t let anyone charge you for sharing those dreams with them… unless they are your therapist!

But there should be a clear differentiation between slimy
events and reputable events.

So who decides?
How would we know?

I’ll propose the NVCA, or better, the Funded, or BOTH together,
should have an event certification process and logo. EVERY VC
and Angel group should post the logo on their sites and blogs as a PLEDGE
to SHUN the parasite events and NOT serve on panels.

Every startup and entrepreneur should spread the word and take
the same pledge.

Kill the supply of VCs and Angels, kill the demand by startups.
When the lights go on, the cockroaches disappear.

Most angel groups are ok and don’t rip people off. There are scammers and rip-offs who should die a slow death. I do hope Keiretsu does sue because you are right, they will loose. They are already loosing in the marketplace. But to generalize from these to say all presenting fees in all groups are bad is a non sequitur. Minimal bozo fees are ok (<$200). It provides a reasonable bozo bar and helps offset an Angel Group's cost. A well functioning Angel group will get the vast majority of it's revenue from sponsorship and membership fees with presenting fees < 10%. High fees, stock percentages are not ok. As a CEO every vendor on earth has tried to roll me for stock and high fees, accountant, lawyer, PR firm, angel group, investment banks, even Fat Boy Slim wanted 1% of my company (LOUD) to play our IPO party. I have raised over $500M for my companies and invested in over 50 start-ups as an Angel, I have seen every scam there is. The right thing for entrepreneurs to do is to tell these people to pound sand. I am not offended that they tried to scam me, it is a free world.

Reading some of the indignation spewed forth against presenting fees you would think the Angel groups were demanding child sacrifice. Lets go ahead and expose the guys who don't deliver value. Then lets all get back to work.

m