When I was a lawyer representing companies and venture capital funds, I was always intrigued by the disparity of due diligence conducted by venture capital investors and entrepreneurs. Venture capitalists typically spend a lot of time conducting due diligence on the market, technology, business model and the entrepreneurs. Entrepreneurs typically spend a little bit of time investigating the venture capitalist and the venture capital firm, focusing mainly on reputation. The TechCrunch article "Things to Consider Before Saying 'I do' to Investors," explores some of the due diligence entrepreneurs should be conducting before accepting a check. One great piece of advice is for entrepreneurs to conduct reference checks on the investor. Here's the link: http://techcrunch.com/2012/04/08/things-to-consider-before-saying-i-do-to-investors/
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