Types of Fraud: Vulture Capital vs. Venture Capital
There are all different types of fraud business owners should look for. However, when your looking to raise capital, fraud is typically the last thing on your mind. That's because raising capital is exciting. Having the money to fuel your business is an entrepreneur’s dream. The reality of the matter is there are scammers, fraudsters, and “opportunities” out there that prey on entrepreneurs raising funds. We call these types of people “Vulture Capitalist.” Getting involved with a Vulture Capitalist is one of the fastest ways to lose your dream. Here’s how to recognize Vulture Capital: The opportunity requires sizable money up front. This is ALWAYS a red flag. If you have to pay money up front before you actually receive ANY capital, then buyer beware! If you owe money up front in the form of a “finder fee,” a “funding fee,” a “service fee,” etc…then you’re at risk of being [...]