I'm not surprised that the day has come where someone actually has to write this. Because, off and on, I've browsed through message boards frequented by writers, where there's a scam - the literary agent scam - that has become so standard that there's practically a manual for it. Google Dorothy Deering to learn more about it; anyone who ever thinks of writing a book or screenplay should read something like this.
The prevalence of people who claim to be "insiders" and who charge you money up front to be represented by them led to the coinage of Yog's Law: in publishing, money flows toward the author. Looks like we need the same rule for startups.
If you start a company or write a book, you'll have to pay expenses (Ramen and pencils) but you don't have to pay to be rejected by the marketplace. The market is happy to reject you for free, as many times as necessary for you to get it right. Be sure to take advantage of that offer. :)