For years we have rehashed the inconvenient truth that angel investor groups & VC’s routinely reject 95% of all biz-plans/deal-flow nationwide for 4 primary reasons to include; being incoherent, conceptual, deceptive, or just plain NO required skin in game.
Way too many assume their ‘idea’ is all they need to get no stings attached tens of millions of dollars in a brown paper bag for the asking in 24 hours. Here is billionaire Mark Cubans’ response to that myth; http://SinCityFinancier.wordpress.com/2012/02/13/if-you-want-an-immediate-NO-start-an-investor.
Also, way too many can’t seem to even identify what specific TYPE of capital they are seeking. So then, how on earth did they plan on proving eligibility today? Here is why “I’m looking for an investor” doesn’t answer the question; http://SinCityFinancier.wordpress.com/2012/04/08/does-anyone-have-any-idea-how-ambiguous-it-is.
4 years ago we started a series of “TOP 10 Inane replies” of callers calling our IR center. Here is the first 10; http://SinCityFinancier.wordpress.com/2010/12/09/posterous-Jeff-shares-a-web-site-with-you-96.
Today, the following post will feature more examples of grossly ill-prepared window-shoppers that cost IR media firms money.
Here is a prime example of a film producer from 2013; http://SinCityFinancier.wordpress.com/2013/05/10/and-the-dubious-award-goes-to-we-dont-care-if-it-is-cartel-money-as-long-as-we-can-get-our-film-made.
Here is another example of film producers from 2012; http://SinCityFinancier.wordpress.com/2012/06/10/seed-capital-completion-funds-are-the-same-th-66359.
Most recently, here are some dubious winners from the Fall of 2014;
Film producer asking for a piddly $30K to do a film for a script he says he doesn’t even have yet. Now doesn’t camera equipment alone cost that much? Person also could not name the different kinds of film finance and thought strategy & financial advisory services and analysis should be free. Even though they are not in the real world of Wall Street. Note: Minimum budget for a film to qualify in BUYING a completion bond is $2M. No bond or other registered securities = forget attracting professional equity investors.
This one takes the cake. Fills out Intake form. Reply to question of what is your goal; “goal is to be rich and donate to church as part of the American Dream”. Person wants to use monetized financial instrument to fund real estate but admits “I have nothing to offer tangibly”. There is a reason why they call it BUYING financial instruments. Reply to question type of capital sought is; “somewhere between 1 and 10 million”. How many times do we have to say a numerical amount of capital is not a TYPE of capital? Reply to question what are you authorizing us to do based on CRM options listed the reply is; “use your best judgement”. Staggering. Our judgement/recommendation/suggestion/opinion/advice is if you need advisory services that isn’t free in the real world. Next question is how many times have capital sources rejected you? At least the person was honest and replied; “constantly”.
Submitted an Intake form nearly 6 weeks ago and listed a disconnected phone #. So the # is not disconnected now and I finally reached him. He rambled on about 2 unrelated types of film and real estate finance trying to tie them in somehow. No specific mention of either on Intake form. Within 5 minutes he mentioned my line was ‘cutting out’. It works fine. In fact all office phones here are brand new. Phone goes dead. I call back. Tape recording.
Person in LA submitted Intake form wanting to do collateralized enhancements letters (POF’s) which are ideal for film producers and real estate developers and can be arranged in as little as a few days (one of the few options that can). Suddenly he had a ‘family emergency’. Tape recording for last 2 weeks. On the surface you might believe this but I’ve heard this lame excuse 100’s of times.
In between the “analysis paralysis”, family emergencies , faulty phones and those with no financial industry experience, and NO attention span to close time-consuming deals and NO pot to piss in either; it’s a wonder IR media firms & penny stock promoters still make profit nationwide despite the costly ill-prepared. One reason might be is because ‘success fees’ are both a deceptive lie and not reflective of industry SOP.
Filling out Intake Form for US Vet-owned IR media communications firm GLOBALCROSSROADSCAPITAL.COM does not make one a contractual client. Doesn’t say it does. Just says ‘preliminary assessment’ at top of page. No idea why anyone would assume this when no other PR firm or financial-services firm in the US is this the case either; other than suggest the person has never successfully dealt with Wall Street or Park Avenue.
P.S. Your free judgement/recommendation/suggestion/opinion/advice can be found on 4,000+ pages by entering keywords in search bar to right side of this blogfeed + by reading our company website.