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The Due Diligence Hierarchy of Pain

View from Seed

When a founder is raising money, he/she should expect that any serious investor will conduct some level of due diligence before getting to yes. I find that most investors I like to work with are pretty mindful of the cost associated with each step of their due diligence.

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5 Steps To Finding The Best Investor For Your Startup

Startup Professionals Musings

Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse due diligence on the investors. Investor due diligence on a startup is not a mysterious black art, but is nothing more than a final integrity check on all aspects of your business model, team, product, customers, and plan.

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5 Due Diligence Tips Before You Invest In A Startup

Startup Professionals Musings

So what can you do, and what are the “red flags” to look for as you do your due diligence before pooling your money with other investors, or accepting money for your startup from investors? Here are some common sense tips: Get financial statements and verify. Amount of assets managed? Another method?

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5 Keys To Vetting Investors Before You Accept Funding

Startup Professionals Musings

Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse due diligence on the investors. Investor due diligence on a startup is not a mysterious black art, but is nothing more than a final integrity check on all aspects of your business model, team, product, customers, and plan.

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Doing Due Diligence on Potential Investors

View from Seed

One of the often neglected parts of fundraising is the process of doing due diligence on potential investors. Partnering with an investor and/or board member is very long term commitment, and I’m always surprised by how little diligence founders do prior to signing up for what could be a 10+ year collaboration. When to do what?

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6 Guidelines For How And When To Use Non-Disclosures

Startup Professionals Musings

The same is true for people who may approach you at networking events or industry conferences. Potential investors don’t need this data, except perhaps as part of a final due diligence after agreement on terms. Build trust first. Discussions with potential strategic partners. Sharing trade secrets.

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10 Lessons To Be Learned By Winning Teams Everywhere

Startup Professionals Musings

Those of you who viewed the movie The Social Network , saw an example of new entrepreneurs dealing with conflict poorly, almost leading to the demise of Facebook. When it’s time for due diligence, we will talk to your team. Master conflict – engage dissidents, and avoid needless power struggles. What do you think they will say?