// A Founder Scammed: Never Put Your Eggs All in One Basket

One of the most promising founders in the New York ecosystem got scammed by an "investor."

Here's how it went down.

She met this "investor" on Twitter/X. (This is not unusual, for the record.)

She had not started raising but was putting together her approach as she worked on her execution strategy, and this "investor" fell in her lap.

She had been through a few accelerators and was gaining traction with her business through solid and reputable partnerships and paid betas with clients.

Now, let's just be clear that this is not a "newbie" founder. She is widely considered an expert and thought leader in her field. In addition to experience at other household-name companies, she ran a significant department for Meta and got a full ride for her MBA at Columbia University. She also went through Y Combinator with another startup that had an exit.

So, the very excited founder had multiple meetings over Zoom with the "investor," who promised a check for $100K after completing due diligence. Documents were drawn up, and wiring instructions were sent.

At the time, the founder was only looking for $150K to get things going, so it was huge to have 2/3 coming into the account with someone who so strongly believed in her and her vision.

And she took her eye off the ball.

💠 Despite being an incredible candidate for grants, she didn't apply.

💠 Instead of finding angels or partners, she focused on jumping through every hoop this "investor" required.

💠 Rather than put all efforts into executing her business plan, she spent time following up with the "investor."

And, to be honest, she kinda spiraled. As the waiting turned from days to weeks to months, she found herself confused, frustrated, and depressed. She couldn't get a clear answer on when the money would be sent, why it wasn't sent yet, and, finally, if it ever would come.

Even though the "investor" had a legit-looking website and social profiles, she decided to investigate further.

Let's just say she found evidence of fraud all over the web, including numerous lawsuits.

Of course, she ceased all contact without acknowledging what she found.

And then she started beating herself up.

She'd been counting on this money, and how could she, such a smart and accomplished person, have let this happen?

💪 She reached out to her network and got support.

💪 She started applying for grants.

💪 She focused on her business.

And now, months later, the fog has lifted.

🌅 She realized she was too early for VC money and has won $250K in grants (so far).

🌅 She was accepted into a significant startup accelerator.

🌅 And her proof of concept is working - she's seeing measurable results.

Founders: Don't be afraid to ask your investors hard questions. If you feel something is wrong, listen to your gut. Don't put all of your eggs in one basket. And always, always, always reach out for help.

And, if you don't have anyone you feel you can share with, you can always DM me.