How to Identify Funding Scam

[mathbate]

Hello, currently in the middle of fundraising, I've been approached by a Swiss family office interested in financing my project.
The individual has a well-established LinkedIn account and their website seems totally legit.

However, the person on the phone was pitching their desire to invest in my company. It was like the roles were reversed. I immediately had doubts about this person's intentions. Moreover, I gave a quick 30-second pitch of my project, sent my pitch deck, and this person came back 10 days later with good news: they can cover all the fundraising we had planned for the next 3 years.

So naturally, my doubt is growing, and although my project is awesome, the approach of this person seems sketchy.

Do you have a way to conduct an in-depth investigation of a person? I'm not talking about just checking their LinkedIn I want to know if this is a real person or a fake identity and therefore a potential scam (even though I'm not sure how they could scam me).

Thanks in advance!

 

[IM Dude]

Did he asked you to give him money to give you money ? Thats what most scamers do.

 

[Wilson Grant Fisk]

This sounds sketchy.
What stage is the start-up?
Have you consulted a Lawyer or Accountant?

https://www.google.co.uk/search?q=start-up+lending+investment+scam

 

[don dada]

Maybe you don't believe in your idea the way you think you do

 

[MoonStarz]

You could ask him or her for previous financing projects from there you can start investigating connections, who they are confirm if those profiles are legits if they provide you different information or a different profile.

 

[mathbate]

Did he asked you to give him money to give you money ? Thats what most scamers do.

Not at all, he want to give me 5m€ lol

 

[IM Dude]

Not at all, he want to give me 5m€ lol

Right, to get it you need to send him 50$ or 5000$ something like that. This was happening even before internet. Haha people still fall for it.

 

[tidelow]

You need full legal name, legal entity for his financing company, address, phone number, email, references/previous successful funder clients you can speak with, ask for a document outline his company's fund process, send over NDA for them to sign, video call to check same person as who the say online... Few things to start.

Honestly sounds like BS imo

 

[mathbate]

You need full legal name, legal entity for his financing company, address, phone number, email, references/previous successful funder clients you can speak with, ask for a document outline his company's fund process, send over NDA for them to sign, video call to check same person as who the say online... Few things to start.

Honestly sounds like BS imo

Yeah i did OSINT and checked : this is a scam.

 

[jeandurand]

The process to enter a company as an investor needs lawyer and accountants to frame the legal steps of the entrance the dillution of the founders the time line of the investement and the conditions of the exit

 

[PixelZero]

First things first, you should definitely have a financial adviser or lawyer involved. There are a couple of ways to find out the info you want. First ask around. Someone knows the person or knows someone who does. You can spend some time with the person like a business lunch and get a feel. Give them the opportunity to talk (its easier to trip up on their own lies) and just pay attention.