Should You Pay Someone to Help You Fundraise?
This write-up was originally sent to subscribers as a part of our Mission Control weekly insights, a series where we share wisdom and quick breakdowns on topics from our entrepreneur support network. Sign up for those here.
TLDR: If someone asks you to pay them to raise money for your early stage startup—walk away. The best case is you’ll waste time, the worst case is you’ll waste time and money. In all cases the false hope hurts, and detracts from making progress.
No, you should not pay someone to help you fundraise. Especially if you are early stage.
Early-stage fundraising is your responsibility as a founder. Investment brokers who charge retainers to “find you investors” are often misaligned, unregulated, and ultimately ineffective at the seed or pre-seed level. Legitimate investment bankers work on much larger deals and are registered to take a percentage of the raise—which most of these early-stage operators are not.
Red flags to watch for:
- They ask for money upfront, regardless of results.
- They’re not a registered broker-dealer but want a cut of your raise.
- Their incentives aren’t tied to your success.
It’s easy to be tempted when someone claims they can unlock investor dollars for you—especially if you’re new to fundraising or have been feeling the weight of the process. But in early-stage land, the economics just don’t support legitimate third-party fundraisers.
Here’s Why It Doesn’t Make Sense for Someone to Help you with Your Raise.
Real investment bankers work on deals in the hundreds of millions. That scale justifies their retainers and their success-based fees.
In the U.S., taking a percentage of a raise requires broker-dealer registration. Without it, doing so is illegal—and any deal structured that way indicates either ignorance or willful non-compliance. Upfront retainers with no back-end incentive mean they get paid whether or not you raise. That’s not alignment. That’s just a service fee.
If the raise is small (read: under $5–10M), there’s no room for a middleman to sustainably and legally make money unless they’re doing it out of charity or confusion. Neither is a good sign.
Fundraising is a Universal Experience for Founders
Fundraising at the earliest stage isn’t a function you can outsource. It’s a leadership act—messy, personal, and strategic. As hard as it is, it’s your job as a founder. The good news is once you make this realization you get to focus on what matters, building an exciting business. The more exciting your business is to your customers the more exciting it becomes to your potential investors. Building that business isn’t easy, but it’s something you control.
There’s no shortcut around early-stage fundraising—and there shouldn’t be. It’s one of the most important things you’ll do as a founder, and it needs to be grounded in trust, clarity, and your direct involvement. At Gust, we help you navigate the process effectively: free tools to build clarity, software to turn clarity into process and Mission Control for hands-on guidance along the way.
Gust's Mission Control can guide early founders through all sorts of complex startup hurdles.
This article is intended for informational purposes only, and doesn't constitute tax, accounting, or legal advice. Everyone's situation is different! For advice in light of your unique circumstances, consult a tax advisor, accountant, or lawyer.