Due Dilligence for Early Stage Angel Investments w/Kurt Bilafer

Effective Angel Investing requires effective Due Diligence to improve the prospects of the investment. The Angel Investors need to check into the details of the company. Since early startups are not registered with the SEC, providing regular quarterly reports on their activities, Angel Investors have to step in and dig into the details of the company and learn for themselves what is happening with the company.

For the Angel Investors, what are the issues that represent the important places to look at a company. It is hard to compare an early pre-revenue company with a company with 10 employees, cashflow positive and a growing balance. Both of the companies may be investable. They are just at different stages.

For Startup Founders, what are the types of things you should have considered and prepared in order for you to engage with the Angel Investor due diligence?

Kurt Bilafer was the LLC manager for Seattle Angel Conference 17. He is an active Angel Investor and participates in the NW Fund Manager Group.