When you’re 20 years old and building a startup from scratch, every big number feels like a dream. So when someone offers you €3 million in your first year, it doesn’t just sound good – it feels like validation. Like all those sleepless nights, all those risks, finally meant something.
The High
We were two young founders, barely out of college, working from a small apartment, trying to make ROOTKey real. Then came the email: a representative of a UK family wanted to invest €3M in our company.
I still remember the rush. The excitement. The feeling that we were about to change our lives. We signed a LOI (Letter of Intent) and started imagining what €3M could do – hiring talent, scaling fast, building the product we dreamed of.
For two 20-year-olds, this wasn’t just money. It was proof that we were on the right path.
The First Red Flag
Before meeting, we asked a partner for a due diligence report on the administrator we were about to meet in Rome. When the report came back, it showed he had legal issues in the UK.
But we f**king ignored it. Why? Because we were blinded by the promise of €3M. We told ourselves: “Maybe it’s nothing. Maybe it’s just a misunderstanding.”
The Day in Rome
We booked flights for three people. Lisbon, 7th of March at 9:00 AM, lunch at 1:30 PM near the Vatican, and a return flight at 5:00 PM. The tickets cost over €800 – a fortune for us at the time. But we didn’t care. This was the meeting that could change everything.
Thanks to TAP delays, we arrived late, but the reception was perfect. A private room in a top restaurant, incredible meat, great wine. Everything felt premium.
I noticed his flashy Rolex – I’m an amateur watch enthusiast, so it caught my eye. The conversation flowed: product details, traction, projections. We explained everything. And then came the real reason for the meeting.
The Twist
He told us how he planned to invest €3.5M in the company… but wanted to “review” €500K of that amount in bitcoins.
Classic. The oldest trick in the book.
In less than an hour, the dream turned into a scam. The excitement, the validation, the hope – gone. All that was left was disappointment and an €800 hole in our budget.
The Lesson
That day taught me something crucial: due diligence is not optional. If something feels off, it probably is.
As founders, we’re often so hungry for growth that we ignore warning signs. But ignoring them can cost you more than money – it can cost you credibility, time, and focus.
Closing
If you’re a founder, remember this:
Not every opportunity is real. And not every investor is who they claim to be.
Stay sharp. Ask questions. Trust your instincts.
