Beware: Fundraising Scam!

Since I started growing my founder community in 2023, I’ve received a lot of attention, especially from businesses targeting founders as potential customers. Unfortunately, this also attracted unwanted attention from scammers.

Many founders, especially those who are active publicly, become targets for scammers. Founders who are fundraising are in a vulnerable position, often letting their emotions cloud their judgment. I get it—after fundraising for 12-18 months, you’re desperate to get it over the line and willing to believe in any fairytale.

There are many horror stories of founders being scammed out of money. Unfortunately, not many of these stories are public, which is why scammers keep getting away with it.

Here’s the scam that almost happened to me (I didn’t go through with it, luckily, but I’m 99% sure it was a scam based on similar stories I found online):

A year ago, while actively fundraising for my previous company, I got a message from someone claiming to be a portfolio manager for high-net-worth individuals. He was interested in my business and requested a pitch deck. He had a LinkedIn profile with a few hundred connections, a photo of some random people, and listed several companies as former workplaces. The fund didn’t have a website, but I found it on Companies House, classified as “other business support service activities not elsewhere classified.” The person I was talking to wasn’t mentioned anywhere.

With all the secrecy around family offices and high-net-worth individuals, this is sadly common. We had a few calls (no camera), and he asked me business-related questions. He claimed to be based in London but said he was in Switzerland for the summer when I suggested meeting in person.

On one call, he told me his client was an Italian oligarch who needed to invest money to avoid paying taxes and didn’t care much about where it went. I was raising £1.5m, and the manager offered to raise £1.7m, but I would need to give him a £200k kickback. I needed the money, so I agreed. He then told me I had to fly to Spain to meet his business partner and client so they could see if I could be trusted. They promised to cover my expenses after the trip. I couldn't travel because my partner was on holiday, and I had no one to look after my dogs, so I said no. He shamed me for not taking business seriously.

On our next call, he changed his proposal, saying he wanted the transaction to be clean so he wouldn’t get in trouble with his client. He said I had to pay him from my own money, outside of the raised funds. This would only need to happen once I got the investment. I knew something was wrong but decided to keep playing along. Meeting his client and business partner in person was compulsory. A few days later, he invited me to a dinner in Cannes (France), but requested proof that I had the money to pay his commission before traveling, and it had to be in a crypto wallet for a trace-free transfer. I told him I didn’t have that much money, and he suggested borrowing from friends, insisting it was a done deal. He shamed me again for wasting his time and not appreciating the opportunity. A few days later, I told him I didn’t have the money, and he ended the deal. (No money - no honey, baby 😀)

Luckily, that was the end for me. Here’s what could have happened based on similar stories I found online: Once they see the money in your crypto wallet, they invite you to meet, likely in a fancy hotel or restaurant. They drug you, unlock your phone, and transfer the money. That’s it!

One of my founder friends had a similar experience and was also lucky to avoid the worst. Shortly after, LinkedIn blocked that person’s account. Today, I found his profile again—new account, different image, same details. I won’t post his name since I can’t prove it’s a scam, but I’m happy to share in private if anyone’s interested.

Watching a new documentary on Apple about the Hollywood Con Queen inspired me to share my story here. Hopefully, it will help someone see the red flags and avoid these scams.

Enjoy networking, but stay vigilant. Always do your due diligence, and if something doesn’t seem right, it probably isn’t. Better to be safe than sorry.

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