Deciphering Real vs. Paper Tigers in Investor Searches

If you’ve ever raised capital, you’ve likely encountered them: individuals or firms claiming to have a “warm” network of investors just waiting for your deal. All they need is a fee, and they'll unlock the gates to the capital kingdom. But more often than not, these turn out to be paper tigers—slick decks, vague claims, and no real access. So how do you separate the signal from the noise? Short answer: I don’t know for sure. But here’s the process I follow so far: - Verifiable Transactions Ask for examples—names, companies, deals closed. If they’ve truly helped raise capital, they’ll have receipts. Of course, this can be faked—so to a certain degree, you have to trust your intuition. Fortunately or unfortunately, your level of skill often determines the outcome. - Aligned Incentives Be wary of large upfront fees with no skin in the game. Real connectors typically work on success-based compensation—or at least a hybrid. The reality is that putting a good deal together benefits everyone financially, which is why the deal happens in the first place. If someone wants guaranteed returns regardless of outcome, that’s a major red flag. - Warm Intros, Not Spam Blasts (i.e., they want to learn about your business) Real players make curated introductions. Paper tigers dump your deck in a database or bulk email list and call it a day. Think about it—if you have real relationships with investors, you’re not going to waste their time. Doing so burns bridges fast. So anyone who truly has that kind of access will spend time (often 8–15 hours) learning about your opportunity before they decide to bring it to their network. That’s how you know it’s truly curated—and actually valuable to the investor. If someone barely knows you but is willing to open their network for a fee, run. Bottom line: Investor access is a valuable currency. Legit players protect it. Fakes sell it. Have you dealt with any great (or not-so-great) investor connectors? Would love to hear how others have navigated this gray zone. #fundraising #startups #venturecapital #foundertips #capitalraising