-
Spotting Red Flags in Investor Meetings
Burak Buyukdemir
Shark Hunt, Istanbul
Founders, here’s the truth: not every investor has your best interests at heart.
You might be in the early stage, desperate for funding, but that doesn’t mean you should ignore the warning signs.
Here are some serious red flags to watch for during those crucial investor meetings.
1. They Think They’re the Boss
Ever felt like an investor talks down to you, interrupts, or outright disrespects your ideas? Red flag. If they don’t treat you like a partner now, expect bigger problems later. They’ll dominate your decisions, and suddenly, it’s their company, not yours.
2. They Think You’re Desperate
If an investor acts like you’re begging for their money, move on. They’ll make you feel small, pushing unfair terms or squeezing you for control. This kind of power play means they’re only looking to exploit your situation, not support your vision.
3. All Talk, No Action
Big promises sound great, but if they never follow through, what’s the point? VCs who claim they can make introductions or provide strategic advice but don’t deliver are wasting your time. You don’t need talkers—you need doers.
4. Overly Critical Without Solutions
If an investor is more focused on tearing down your idea than offering real feedback, that’s a problem. Criticism is valuable when it’s constructive. But if they’re just poking holes without offering solutions, they’re not the right fit for your business.
5. Pushing a Pivot Without Understanding Your Business
When an investor pushes you to pivot or change direction without fully grasping what you do, it’s a red flag. Don’t be led astray by someone who doesn’t understand your market. Stick to your vision unless you have a compelling reason to shift.
6. Not Clear About What Happens Next
Vague or evasive about next steps? Huge red flag. If they can’t tell you what the decision-making process is or what happens after the meeting, they’re probably not serious. You don’t have time for investors who keep you guessing.
7. Bringing Up Legal Jargon Early
When legal terms or complex deal structures come up too soon, it’s usually a sign the investor is more concerned with protecting their interests than building a relationship. Be cautious when the conversation gets bogged down in technicalities before you’ve even discussed your vision.
8. Unprepared or Uninformed
If they haven’t done their homework—meaning they ask basic questions that your pitch deck covers—they’re not serious. It shows a lack of respect for your time and a low level of engagement. If they can’t be bothered to read, how will they support your startup?
9. Too Focused on Exit Strategy
If all they care about is how quickly they can cash out, that’s a problem. A good investor is in it for the long haul, helping you build something sustainable. If they’re obsessed with exits, they’re looking for a quick win, not long-term success.
10. Ghosting After the Meeting
One of the worst offenses—going completely silent after a meeting. No follow-up, no response to emails, no clear decision. If an investor ghosts you, it’s not just rude; it’s a sign they lack professionalism and may not have been serious in the first place.
Founders, be on guard. Not all money is good money.
If you spot any of these red flags, walk away.
You deserve investors who respect you, your business, and your vision.
Choose wisely, or you’ll regret it later.