Warning Signs That the Startup Is in Trouble

Warning Signs That the Startup Is in Trouble

February 19, 2021 by investor

As an investor, you can often see warning signs of trouble in small ways before they become full-blown in the startup.

Here are some of them:

– The CFO quits unexpectedly
– The paychecks to employees bounce and it’s called an “accounting error”
– Information from the CEO becomes limited and they don’t return phone calls
– Administrative people are let go without explanation
– Missed revenue expectations — again
– Founders leave the company without six months’ notice

When you notice things seem out of the ordinary, it’s best to contact the team and ask for a straight-up answer.

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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.