As an Angel Investor, doing effective due diligence is a fundamental factor in getting better returns from your investments. As a startup, having touched all of the corners of your business, so that the due diligence process goes smoother, also helps you to run a healthier business. What are the issues that an Angel Investor needs to dig into? What are the types of activities that would normally lead to a good investment?
We know from the work of Rob Wiltbank at Willamette University, that at least 20 hours of due diligence will improve Angel Investing returns. The exploration of the team, market, finances, and customer traction lead investors to a stronger investment.
Milton Sigelman is a past investor in the Seattle Angel Conference and the SeaChange Fund.