Jeff McDermott’s Post

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General Partner focused on early stage VC, Real Estate, Ecosystems, Startup Studios, GP Stakes & Fund of Funds.

Beware of the "daisy chains" in the funding world as they sound good until you peel back the layers of bullshit to find out that nothing is there. Daisy Chain: Someone who knows someone who knows someone who knows someone...who is either an investor or a "finder" who is 99.99% always unlicensed. "Hey Jeff, I know some people looking to invest in deals. Do you have any?" Sure do. Who are they? "Partners of mine who fund deals." Okay...are they investors or brokers? "Brokers." Are they licensed to sell private securities? "They are licensed but not sure about private securities. They typically fund real estate deals and startups." Any examples? "Not off hand but I can get you some." Okay cool. So, how do they get paid? "Upfront retainer and then a piece of the back end." How about names so I can do my DD before taking a meeting? "I'll get you that info but I'm the lead so you'd be working directly with me." Are you licensed to sell securities? "No." Then how do you get paid? "A percentage of their commission." So...you know some people who are most likely doing some unlicensed illegal shit and they're paying you on the back end for doing the upfront lead gen and qualifying. Have they paid you on any deals yet? "Not yet. Why do you say illegal shit?" If you don't know why, this is where we end the conversation. If you can't tell, I enjoy messing with these people! I'm sure you've had these conversations if you're out looking for capital. Don't fall for it, it's BS and you'll go down with them!

Martim Gross

Building communities that foster connections (Built-to-Rent)

9mo

I don't get this. Really. They spend a lot of time on that. Why?

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Elizabeth Durand

Growth Executive | CEPA, CPCM

9mo

Every. Damn. Day.

Charles Beyrouthy

Managing Partner at Forma Prime | Innovation Strategy Leader and Venture Capital Investor

9mo

🤣

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