Free checker
Investor legitimacy checker: spot fake and predatory investors
Founders get approached by “investors” who charge fees, promise guaranteed funding or ask for bank details. Tick what you have seen and the checker tells you whether to walk away, slow down or proceed with normal diligence.
- Search the regulator’s register for the fund manager (SEC IAPD, FCA register or your local equivalent).
- Call two founders from their portfolio without the investor arranging it.
- Check that the email domain matches the fund’s website and that the person is listed on it.
The rule that catches most scams
Real investors never charge founders to invest. Any upfront fee, retainer, diligence fee or pay-to-pitch request is a business built on founders, not returns. Legitimate funds pay their own costs and expect to earn on the exit.
Patterns to watch
Guaranteed returns, pressure to sign in 48 hours, no portfolio founders who will take a call, free email domains, requests to invest in their fund or token first, and terms far better than market with no diligence. One severe signal is enough to stop.
Three checks that take ten minutes
Search the regulator’s register, such as SEC IAPD or the FCA register, for the fund manager. Call two founders from their portfolio without the investor arranging it. Confirm the person is listed on the fund’s website and the email domain matches.
Predatory but legal
Some real investors offer predatory terms: 3x preferences, control for small checks, fees charged to the company. Those are not scams, but the answer is the same: walk away or negotiate hard with a lawyer. The term sheet checker covers them.
Questions founders ask
Are paid pitch events always a scam?
Not always, but a fee to meet investors is a bad signal. Free demo days, warm introductions and matching platforms exist.
Is a finder’s fee legitimate?
A success fee paid by the company to a licensed placement agent can be. A fee paid in advance to an individual rarely is.
What if I already paid?
Stop further payments, document everything and report it to the regulator and the platform where you met them.
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Stop guessing which investors fit. Let them find you.
Founder Starter is free: your profile goes in front of investors on SeedScope and they can email you. Founder Pro shows who viewed and watchlisted you, by name, and lets you email your matched investors. Founder Premium picks 20 new best-fit investors every week and writes your first email to each one.