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Should Start-Ups Pay to Pitch?

November 30, 2009 /

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A new business plan competition is kicking up a controversy: Should start-ups pay to pitch to investors? And if yes, how much is too much?

Most United States-based competitions allow entrepreneurs to apply and compete free. The Women 2.0’s Pitch Night start-up competition charges $25 to process applications. Others ask teams to pay a few hundred dollars for their own food, lodging and travel.

But a Boston-based angel investment group called Revolutionary Angels believes $4,995 is a fair fee. This October, the fund started its inaugural business plan competition with a “participation fee.” The group accepts applications free but will charge 100 qualifiers to attend its finalists’ event, where they can pitch ideas to a panel of investors and entrepreneurs and win a top prize of $250,000 in seed finance.

By LORA KOLODNY

Full Story: http://boss.blogs.nytimes.com/2009/11/25/should-start-ups-pay-to-pitch/

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