Monday, October 19, 2009

Venture Capital and Angel Financing - Do Your Due Diligence

An article titled "Perform Due Diligence on Potential Investors" appeared recently on Business Week's website. Its author (Tom Taulli) reminds those pursuing venture capital and/or angel financing that, despite current lending conditions, there's still an obligation to review the qualifications and histories of potential investors. Just because traditional lending sources have tightened is no reason to act desperate, and give away too much during negotiations.

Several suggestions are then offered as to what "due diligence" should be done. In addition to these, I recommend these two sites (both of which I've recommended in previous blog posts):

1) TheFunded (written about here on 5/21/07)
2) Punctuative - the Venture Capital Database (written about here on 8/6/08)

Both sites are useful in that they enable those seeking investment to comment, critique, and/or condemn the performance of some funds out there. A little background, then, can only help.

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