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This may sound as absurd to you as it does to me. While searching for angel investors, a company contacted me (several in fact, but one was a real company with real people) and offered to fund my start up to full production due to the type of mfg as long as it's all USA made. (My plan anyhow). Funds are incredible and the employees and business check out with my lawyer. They want the min fee of 100K up front that is refundable in 6 months with funding draw #1. These people check out and as I have been raising the 100K plus attny fees and living expenses for 6 mos. a few people questioned this. They too are running due dilligence and I hate to even think this is a scam. It checks out and the state they are from says they are legit.. my lawyer says they are legit... Research shows connections of these people to all the right groups, but I know scams can run deep. Gut instict said to listen to them, second instinct is in awe.. and finally I am double checking myself. A wealthy potential provider of these initial funds is also doing due dillidence. This is a big deal and a life altering invention that will change the USA and mankind. How often does this kind of thing take place on the up and up?
I would NEVER pay out $100K as an up front fee for them to write you a check. PERIOD. It does sound absurd and you will most likely never see a dime of their financing nor your $100K ever again. Look for an investor who wants to write YOU a check, not the other way around.
Now, I know of financiers and lenders, especially in equipment or purchase order where they change an application fee, but $100K is ridiculous.
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