The following are 3 quotes from experienced businessmen of different industries on Linkedin that bring a much needed reality check in fund raising. Here is the 1st one. The other 2 are at bottom of post.
Tom Cannon has sent you a message.
Subject: RE: “The fees “up front” should not be taken out of context. 1st… few if any investment bankers or banks will grant funds without fees. ”
(Including something known as a down payment as there is no such thing as 100% financing. Ask yourself… if you were a lender why would you lend $10M to one who doesn’t have 10 cents?)
“These fools are naive, and clueless. Nothing is free. I think a lot of these posers are kids or dumb enough to act like one. Any credible deal has fees, lots of them. The fees act as a sort of support for the business if the CEO structures them right. If A deal does not have fees, it is nothing –officially.
I have completed over $ 1.2 billion –every deal had fees. When I was CEO, I paid everyone, and an IPO is a bank rush for fees. People suffer from inexperience. Want a line of credit — bank wants 2.5 % annually……..just to keep it open. This is business — real business not “happy talk” kumbaya and hurtie from those who think others are lucky to work for them……………for free. Insane”
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The NEXT 2 QUOTES are below…