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Ask HN: What's the best way to do due diligence on an Angel Investor?

7 pointsby matthewerabout 16 years ago
What is the best way to check out your angel investors (before you take the money?) Assume we have already googled/linked in them. Reference checks? Follow them? Talk to their wife?

3 comments

cpercivaabout 16 years ago
Make it clear that you're not committing to anything until it's in writing and you've had a lawyer look at it. That way even if the "angel" is less than angelic, he can't cause too much damage.<p>Deals fall through; that's a fact of life. Deals with inexperienced angels fall through in particularly screwy ways. Shortly after I started working on tarsnap, I talked to a wannabe angel; it sounded like we had hammered out the framework for a deal, but "I'll get this put into writing and send it over for you to review in a few days" stretched into two months, and the draft he sent over was unlike what we had discussed on nearly every important point -- and then when I objected he accused me of backing out of a deal and threatened to sue me for the cost of drafting it (he never went so far as to tell me how much those fees were, though, so I guess he came to his senses).<p>Seriously -- unless you're dealing with an angel who has a track record, trust them as much as you'd trust a second hand car dealer.
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rmsabout 16 years ago
Talk to the entrepreneurs they have invested in.
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ekhjehcjkerchabout 16 years ago
sleep with their wife.<p>sorry ;)