Red Flags in Investor Deals: Watch Out For This Before You Say Yes
Release Date: 04/22/2025
Seed Money
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info_outlineFinding an investor and getting the funding you need is a huge win, BUT it’s not the whole story. There can be red flags in investor deals that founders need to watch for and navigate.
The truth is: not every investor is right for you, and not every deal will favor you. Some investors might do more harm than good and even screw you over in the end.
Some deals come with hidden strings, controlling terms, and long-term consequences that can derail your business.
To sniff this out, you have to get good at spotting red flags in investor deals and conversations. And most importantly, always fully understand what you’re signing up for.
The good news is that investors with the wrong motives are often easy to spot (if you know what to look for).
It comes down to what they say (or don’t say) or how much control they want in exchange for their check.
Sometimes, spotting a bad-fit investor or red flags in a deal is as simple as trusting your gut and listening to that little voice saying something isn’t quite right.
What are some immediate signs that working with an investor would be the wrong fit?
How do you make sure you’re not signing a deal that will screw you over in the future?
In this episode, I share some warning signs to look out for when you meet with investors and questions you should ask every investor who expresses interest in your business.
About Your Host
Jayla Siciliano, Shark Tank entrepreneur turned real estate investor, excels in building brands, teams, and products. CEO of a bi-coastal luxury short-term rental company, she also hosts the Seed Money Podcast where she’s on a mission to help early-stage entrepreneurs turn their ideas into reality!
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The information in this podcast is educational and general in nature and does not take into consideration the listener's personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice.