Sharks, venomous people & red flags
How to navigate the startup waters?
I love this one “Hi Venomous, you so cute!”
How many times have you ignored red flags?
I’ve ignored red flags and learned the hard way.
Red flags came from founders I invested in, who later disappeared with the money or refuse to convert loans (costing me more money in law suits).
But also from unprofessional advisors and investors who pushed me toward burnout or requested huge equity in companies (which luckily I never gave).
Even professionals and service providers who promised miracles and delivered nothing.
These kind of people are everywhere.
Now, I’m a happy skeptic. I say happy cause it did not make me bitter. I see the red flags, I smile and walk away.
But I still see so many founders, advisors, board members and investors falling into the same traps, trusting too fast, rushing into deals, ignoring their gut.
How to navigate the startup waters?
The startup world is full of promise… as well as smoke and mirrors.
Innovation, vision, risk, money and bold dreams.
Attract a dark side: opportunists, scammers, and “sharks” who prey on trust, speed, and the fear of missing out.
As someone who meets hundreds of people and new deals every year, I’ve learned that not everyone who shows up is who they say they are.
And while we all want to move fast, this is a space where going slow, at the right time, can save your reputation, your capital, and your peace of mind.
Your peace of mind is the most important one. Let´s protect it.
🚩 Red Flags to Watch For
Name dropping ≠ credibility – Real people doing real things don’t need to overcompensate.
Smoke & mirrors – Flashy decks, buzzwords, huge and mysterious numbers? Ask for clarity. Ask for proof. Speak to clients, speak to their investors, speak with their network. Do your background check. Do you Due Diligence (even on investors and pretty much on anyone who wants to get involved with you).
Too perfect or too desperate – Extreme confidence and extreme neediness can both mask something.
Overly aggressive closers – The “sign now or miss out” tactic is often pure manipulation. TAKE YOUR TIME.
Inconsistency in their story – If the timeline doesn’t add up, or their backstory shifts, trust your instincts.
🔍 Simple & Effective Due Diligence
Google deeply – Past ventures, lawsuits, complaints, media articles.
Talk to past collaborators – Clients, colleagues, startups they’ve backed or built.
Start small before committing big – Co-create something minor before giving access or capital. Test the relationship.
Check numbers – Ask for traction metrics, revenue, Profit & Loss statements. See how they respond. Get access to what you need to make a proper decision.
Ask direct questions – Real people welcome real questions. Scammers avoid them. If you don´t get straightforward answers, walk away.
Get other investors or professionals from your network to give their input and still be careful.
Whether you're a founder raising money, a board member, or an investor - take your time. If something looks too shiny, if anything feels off, if you rush the process… chances are, you'll regret it later.
The best decisions in the startup world aren't made in haste, they're made with diligence, questions, and a healthy dose of skepticism.
That´s why generally speaking investors, board members and founders who end up working together - are from the same network and even same city/country.
Because it is all about knowing each other and being able to trust each other.
No trust = no business.
💡 Additional Smart Habits
Read every word of the contract – Don’t assume. And don’t be afraid to ask a lawyer or ask questions.
Take your time – Urgency can be a smokescreen for poor intention.
Trust your gut – If something feels off, it probably is.
Avoid shortcuts
Beware of over-promising – "Guaranteed exits," "overnight growth," or "insider access" - big claims = big lies.
🛡️ One of the Best Protections?
Join a Vetted Community, a vetted network.
That´s why I focus so much on sharing advice on how you can build your network and why I have been building communities for founders since 2015.
I have seen investors jeopardize companies, board members who don't understand their roles, expectations, and responsibilities, and unprofessional founders ruining the reputation of the startup ecosystem.
This is why we created The Visionary Board.
A safe space where investors, founders, board members, and experts gather around shared values, accountability, and real due diligence.
Within our community:
✅ Founders raised fast: because trust is already built
✅ Investors and board members meet serious, pre-qualified companies from our network.
✅ We teach best practices, not hype.
✅ We enforce a Code of Conduct and Rules Of Engagement: break them and you're out.
Being part of a vetted, values-aligned network helps you avoid the guesswork, the predators, and the toxicity that sometimes hides behind charisma, big names and even some big brands…
🤝 Let’s Build A Nurturing Business Ecosystem Together
It’s up to all of us, founders, investors, board members, connectors, to hold the bar high and help each other stay smart, grounded, and protected.
P.S. Want to join a vetted community of founders, board members, VCs and angel investors who actually walk the talk? Check out The Visionary Board and reply “Visionary Board” to this email if you are interested.
Next 3 day all inclusive event in Amsterdam in happening 1st week of November.
Special discount applies to startup founders.
Surround yourself with peers, board members and investors who understand business, best practices and ethics.
Until next time! 🌱
Raja Skogland