In raising funding, it’s important to choose the right investors for your startup.

Avoid toxic investors at all costs.

Here are signs of a toxic investor:

They have no values and don’t make clear what they are looking for in a startup.

They say they are interested in funding your deal but never take action.

There’s no follow-up on terms sheets or diligence work.

They continue to drag out the funding for non-substantial reasons.

They want a long lockup period while they do their due diligence.

Lock-up periods typically range from thirty to sixty days.

They have unrealistic expectations about growth and what the company can do.

They want a controlling stake in the company.

Aside from being an investor, they’re a jerk.

Their presence dissuades other investors from joining the round.

They have no care about others’ interest in the deal but only their own.

They have a history of blowing up startups.

Look for these signs you may be talking to a toxic investor.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
________________________________________________________________________

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
For more episodes from Investor Connect, please visit the site at: http://investorconnect.org
Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/
For Feedback please contact info@tencapital.group
Please follow, share, and leave a review.
Music courtesy of Bensound.

Copyright (c) 2025, Hall Martin and investorconnect.org. All rights reserved.

Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.