“Don’t Take the Fcking Money” – Red Flags Every Founder Should Know

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Vasily Alekseenko
March 26, 2025

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“Don’t Take the Fcking Money” – Red Flags Every Founder Should Know

When it comes to raising money, most founders are so desperate for a “yes” that they ignore all the red flags that come with it.

Chris Howard (serial founder, investor, psychologist, and someone who’s raised millions) put it simply:

❝

“Most bad investments happen because founders let them happen.”

Let that sink in.

Chris isn’t blaming founders – he’s calling out the power dynamic that puts investors on a pedestal and turns founders into subservient, validation-hungry people who say yes to terms they know are shit.

This mindset? It’s dangerous.

The Two Golden Rules 💥

Chris says there are only two things that matter when choosing an investor:

1. Power Dynamic Check

Ask yourself: Does this investor understand they are riding on YOUR success?

If they act like they’re doing you a favour, run. The best investors say,

❝

“I found a great opportunity and it’s a privilege to be part of the journey.”

If they think they’re the main character, that’s already a red flag.

2. Do. F*cking. References.

Speak to other founders they’ve invested in.

Not just the golden child from last month — find people they backed over a year ago.

What happened after the honeymoon? How did they act when things weren’t perfect?

The Red Flags 🚩 (in Chris’s words, and mostly unfiltered)

🔻 Term Sheet vs Shareholder Agreement Mismatch

If the legal docs include things you didn’t agree to — that’s a sign of intent.

They’re playing games. They’ll keep playing them.

🔻 Reserved Matters That Let Them Fire You

If investors can replace you as CEO without your consent, that’s not venture capital, that’s corporate takeover energy.

🔻 Tranches

“I’ll invest £3M… in 3 parts.”

Translation: We’re going to hang that money over your head and pull it the second you miss a metric.

Early-stage startups pivot constantly. Tranche-based deals are traps.

If they insist, make them put the full amount in escrow. If they say no? Walk.

🔻 They’re Not the One Signing the Cheque

If they don’t have decision-making power, it’s not a real commitment.

Yellow-orange flag. Be cautious.

🔻 Wanting Extra Equity for “Advising” You

Fine… if it’s separate, vesting, and you evaluate them like a team member.

If they want sweat equity and won’t vest it, tell them to f*ck off. Chris’s words. Not mine. (Okay, also mine.)

🔻 Board Seat Power Grabs

Never give up board control early. Avoid even-number boards.

If needed, appoint an independent — but you choose them.

🔻 Pro-Rata Rights That Can Be Sold Without Your Consent

This one’s sneaky. If they can sell their right to invest in the next round to anyone they want, you lose control over who gets on your cap table. Always ask for founder approval.

🔻 Clauses That Let Them Change the Team or Strategy Post-Investment

If they want the right to override your direction, they’re not betting on you. They’re betting on control.

The Bottom Line 💬

Red flags are not hard to spot.

But when you’re tired, stressed, low on cash, and high on hope… you ignore them.

You convince yourself this deal is the deal. You need it. You’ll make it work.

But the truth is, bad investors don’t just slow you down — they kill companies.

❝

“Don’t take the f*cking money.” – Chris Howard

Before we jump into events, a quick personal update…

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RARE FOUNDERS EVENTS🔥

Rare Founders

London’s Largest Demo Day

100 pre-selected founders will get on stage to pitch to the audience of hundreds of investors. Join 30+ founders who secured funding at the last demo day in Oct.

Tickets to attend are FREE. Join the waitlist here.

In-person event

1 Wimpole Street, Westminster, London, W1G 0AE, UK

Fri 25 Apr, 9:00 - 17:00 GMT

OTHER LONDON EVENTS🌟

Pitch And Run

Pitch And Run London

Join a 5km social run to connect with others in the startup space while enjoying a scenic route across London's iconic bridges. Open to all, the run starts near St Paul’s and loops back via the Golden Jubilee Bridges.

In-person event

Churchyard, London, EC4M 8AD, UK

Thu 27 Mar, 08:00 - 09:15 GMT

MIT Open Learning

Privacy Challenges In The Age Of AI Agents

As AI becomes more embedded in daily life, privacy concerns are evolving, raising challenges around data collection, processing, and potential misuse. This session explores real-world examples, regulatory and ethical implications, and strategies for balancing innovation with privacy protection.

Online event

Thu 27 Mar, 12:00 - 12:30 GMT

Founders Capital

The Future Of Venture Capital: Investing In A World Transformed By AI

A panel of experts from venture capital, AI, and entrepreneurship will explore how AI is reshaping the investment landscape, from identifying high-potential startups to managing risks in emerging technologies. The discussion will provide insights into the strategies investors use and how founders are leveraging AI to drive innovation and scale.

In-person event

Charing Cross Area, London, UK

Thu 27 Mar, 18:30 - 22:00 GMT

Founder Mums

Networking Event

Join an inspiring evening celebrating Founder Mums, offering networking, insightful panel discussions, and a chance to connect over drinks and canapés on an exclusive rooftop terrace. Attendees will gain valuable advice from successful entrepreneur mothers while enjoying an uplifting atmosphere filled with support, shared experiences, and old-school tunes at the after-party.

In-person event

Margarets, Twickenham, TW1 2AW, UK

Thu 27 Mar, 19:00 - 22:00 GMT

Speed AI

Speed AI Build London

An immersive AI build event where founders, developers, and AI enthusiasts collaborate to create innovative solutions using the latest tools. Participants will experiment, receive real-time support, and compete for awards, all while connecting with like-minded builders in a high-energy, hands-on environment.

In-person event

Westminster Area, London, UK

Sat 29 Mar, 09:00 - 17:00 GMT

The Offline Club

The Offline Sunset | World Record Attempt

Join a unique gathering of 1,000 people to watch the sunset over London, completely unplugged, with no phones allowed. This world record attempt encourages participants to be fully present, embracing the beauty of the moment without the distraction of capturing it.

In-person event

GRQQ+RP, London, NW8 7ED, UK

Sat 29 Mar, 18:00 - 19:00 GMT

GoodTech Ventures

PowerUp Pitch

Join an opportunity for early-stage impact founders to refine their pitch, receive expert coaching, and compete for a £15,000 grant. Open to pre-seed, tech-for-good startups in London, the program supports ventures aligned with key social impact missions, offering a £500 participation prize and a chance to pitch in front of an engaged audience.

In-person event

Shoreditch Area, London, UK

Mon 31 Mar, 14:00-17:00 GMT

Pinecone

AI Agents In Action With Pinecone And SmartCat

This event explores how AI agents retrieve, process, and apply information using vector databases like Pinecone, featuring expert insights, real-world use cases, and a live demo. Attendees will gain practical knowledge, enjoy networking opportunities, and connect over food and drinks.

In-person event

Dean St, Greater, London, W1D 3SB, UK

Mon 31 Mar, 18:00 - 21:00 GMT

Baby VC

Fueling The Future: Fundraising for Climate Tech Startups

A panel discussion will explore the challenges and opportunities in fundraising for climate tech startups, covering early-stage funding, the role of universities and incubators, and emerging industry trends. The event will conclude with networking over food and drinks, offering a chance to connect with founders and climate tech enthusiasts.

In-person event

Temple, London, WC2R 1EA, UK

Mon 31 Mar, 19:30 - 21:00 GMT

Oasis London

Founder Workshop And Legal Clinic

Join a practical workshop and legal clinic designed for early-stage startup founders to navigate key challenges in Corporate Questions, Intellectual Property (IP), and Recruitment. Attendees will gain expert insights from Mishcon de Reya’s team, covering company structuring, shareholder agreements, IP protection, and hiring strategies, with opportunities for networking and direct Q&A.

In-person event

60 Strand, London, WC2N 5LR, UK

Tue 1 Apr, 17:00 - 20:00 GMT

TechCrunch

Christians In London Tech Startups

This informal gathering connects Christians in high-growth, product-driven tech startups to explore the intersection of faith, entrepreneurship, and an AI-driven industry. The meetup offers a casual setting with food, discussions from founders, and an open invitation for others in the startup space to join.

In-person event

Barbican Area, London, UK

Tue 1 Apr, 18:30 - 23:00 GMT

Novabook

What VCs Look For in B2B SaaS

Join this exclusive webinar to uncover how VCs assess B2B SaaS startups, covering key fundraising benchmarks, red flags, and go-to-market strategies for scaling. Led by a top investment firm, it provides actionable insights to help founders position their startups for growth and attract investor interest.

Online event

Wed 2 Apr, 11:00 - 12:00 GMT

LSE Generate

Startup Talent Fair

The Startup Talent Fair offers a unique chance to connect with fast-growing startups and scale-ups, providing opportunities for internships, entry-level, and senior roles across various industries like fintech, SaaS, and sustainability. Attendees can network with founders and startup teams, gaining insights into exciting career paths beyond the corporate world.

In-person event

Houghton St, London, WC2A 2AE, UK

Wed 2 Apr, 13:00 - 17:00 GMT

TBD Group

TBD Conference 2025: 'Eigengrau'

Join an exploration of the unseen layers of possibility, where innovation emerges from the space between the known and the imagined. Through thought-provoking discussions, uncover hidden opportunities, spark creativity, and tackle the challenges shaping the future.

Online event

Thu 3 Apr, 09:00 - 19:30 GMT

Block Dojo

Block Dojo Cohort 10 Showcase

An exclusive showcase featuring the latest AI and blockchain startups seeking SEIS/EIS investment, offering a glimpse into their business propositions and progress from the 12-week Dojo programme. The event includes networking over canapés and drinks, followed by an After Party.

In-person event

Here East, London, E15 2GW, UK

Thu 3 Apr, 17:00 - 22:00 GMT

Pre-seed to Succeed

Offline Pitch-Session for Startups

Join a high-energy pitch session in London will connect ambitious founders with seasoned investors, offering startups the opportunity to present their ideas, receive expert feedback, and expand their networks.

In-person event

Weston St Area, London, UK

Thu 3 Apr, 18:00 - 21:00 GMT

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Vasily Alekseenko
Founder
@ Rare Founders

Rare Founders - building the bridge between founders and investors via regular in-person and online events, meetups, conferences.

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