I’ve had startup founders tell me that it’s only about the color of the money, but I disagree. Particularly if you are desperate, keep in mind the person who finds a good-looking partner to take home from the bar at closing time, but then wakes up in the morning wondering “What did I just do?” Taking on an investor is like getting married – the relationship has to work at all levels.
Due diligence on an investor is where you validate the track record, operating style, and motivation of your new potential partner. Maybe more importantly, you need to confirm that the investor “chemistry” matches yours. Here are some techniques for making the assessment:
- Talk to other investors. The investment community in any geographic area is not that large, and most investors have relationships or knowledge of most of the others. Of course, you need to listen for biases, but local angel group leaders can quickly tell you who the bad angels and good angels are, and what kind of terms they typically demand.
- Network with other entrepreneurs. Contact peers you have met through networking, both ones who have used this investor, and ones who haven’t. Ask the investor for “references,” meaning contacts at companies where previous investments were made. Don’t just call, but personally visit these contacts.
- Check track record on the Internet and social network. Do a simple Google search like you would on any company or individual before signing a contract. Look for positive or negative news articles, any controversial relationships, and involvement in community organizations. Check the profile of principals on LinkedIn and Facebook.
- Spend time with investors in a non-work environment. As with any relationship, don’t just close the deal in a heated rush. Invite the investment principal to a sports event, or join them in helping at a non-profit cause. Here is where you will really learn if there is a chemistry match that will likely lead to a good mentoring and business relationship.
- Validate business and financial status. Visit the firm’s website and read it carefully. Look for a background and experience in your industry, as well as quality and style. Conduct a routine credit and criminal check, using commercial services like HireRight. Be wary of individuals or funds sourced from offshore.
If you think all this sounds a bit sinister and unnecessary, go back and read again some of the articles about Bernie Madoff and recent investment scams. Remember, if it sounds too good to be true, it probably isn’t true. Entrepreneurs are optimists by nature, so I definitely recommend the involvement of your favorite attorney (usually the pessimist).
I recognize that it has been tough to raise capital these last couple of years, but don’t be tempted to take money from any source. This can be a big mistake, with common complaints running the gamut from unreasonable terms, constant pressure, to company takeovers. Be vigilant and ask questions.
A successful entrepreneur-investor agreement better be the beginning of a long-term relationship. If you don’t feel excited and energized by your first discussions with an investor, give it some time and do your homework. If the feeling doesn’t grow, it may be time to move on. It’s better to be alone than to wish you were alone.
Martin Zwilling is CEO & Founder of Startup Professionals, Inc.; he also serves as Board Member and Executive in Residence at Callaman Ventures and is an advisory board member for multiple startups.This post was originally published on his blog, and it is republished here with permission.
The U.S. Chamber of Commerce, a 501(c)6 business association that isn�t required to disclose its donors, ranks as the top outside-spending group that is not a party committee, such as the Democratic National Committee or Republican National Committee. The Chamber has spent $35 million this election cycle on �electioneering communications,� targeted broadcast messages that include a visual or audio reference to federal candidates but don�t expressly advocate for or against those candidates.
eric seiger
Colts <b>News</b>: NFL: <b>NEWS</b>
NFL: NEWS. Seven Colts players were named to 'The Top 100: NFL's Greatest Players' in a series produced by NFL ...(11.05). GETTING THERE - . NFL: NFC NEWS - � NFL's Top 100 Players: No. 8, Peyton Manning � One on One ...
Good <b>News</b>: Bookmark-Syncing Service Xmarks Not Closing Down After All
Back in September, we heard that bookmark-syncing service Xmarks was shutting down in 2011, which came as awful news to those of us who relied on the any-browser extension to keep our bookmarks in sync no matter what browser we were ...
Small Business <b>News</b>: Building Your Small Business Empire
Thinking big in your small business will stop you from ignoring potential markets, and allow you to try those super cool ideas you might think your business is.
eric seiger
Due diligence should always be a two-way street. A while back, I published an article on “Understanding the Dreaded Investor Due Diligence,” describing what investors do to validate your startup before they invest. Here is the inverse, sometimes called reverse due diligence, describing what you should do to validate your investor before signing up for an equity partnership.
I’ve had startup founders tell me that it’s only about the color of the money, but I disagree. Particularly if you are desperate, keep in mind the person who finds a good-looking partner to take home from the bar at closing time, but then wakes up in the morning wondering “What did I just do?” Taking on an investor is like getting married – the relationship has to work at all levels.
Due diligence on an investor is where you validate the track record, operating style, and motivation of your new potential partner. Maybe more importantly, you need to confirm that the investor “chemistry” matches yours. Here are some techniques for making the assessment:
- Talk to other investors. The investment community in any geographic area is not that large, and most investors have relationships or knowledge of most of the others. Of course, you need to listen for biases, but local angel group leaders can quickly tell you who the bad angels and good angels are, and what kind of terms they typically demand.
- Network with other entrepreneurs. Contact peers you have met through networking, both ones who have used this investor, and ones who haven’t. Ask the investor for “references,” meaning contacts at companies where previous investments were made. Don’t just call, but personally visit these contacts.
- Check track record on the Internet and social network. Do a simple Google search like you would on any company or individual before signing a contract. Look for positive or negative news articles, any controversial relationships, and involvement in community organizations. Check the profile of principals on LinkedIn and Facebook.
- Spend time with investors in a non-work environment. As with any relationship, don’t just close the deal in a heated rush. Invite the investment principal to a sports event, or join them in helping at a non-profit cause. Here is where you will really learn if there is a chemistry match that will likely lead to a good mentoring and business relationship.
- Validate business and financial status. Visit the firm’s website and read it carefully. Look for a background and experience in your industry, as well as quality and style. Conduct a routine credit and criminal check, using commercial services like HireRight. Be wary of individuals or funds sourced from offshore.
If you think all this sounds a bit sinister and unnecessary, go back and read again some of the articles about Bernie Madoff and recent investment scams. Remember, if it sounds too good to be true, it probably isn’t true. Entrepreneurs are optimists by nature, so I definitely recommend the involvement of your favorite attorney (usually the pessimist).
I recognize that it has been tough to raise capital these last couple of years, but don’t be tempted to take money from any source. This can be a big mistake, with common complaints running the gamut from unreasonable terms, constant pressure, to company takeovers. Be vigilant and ask questions.
A successful entrepreneur-investor agreement better be the beginning of a long-term relationship. If you don’t feel excited and energized by your first discussions with an investor, give it some time and do your homework. If the feeling doesn’t grow, it may be time to move on. It’s better to be alone than to wish you were alone.
Martin Zwilling is CEO & Founder of Startup Professionals, Inc.; he also serves as Board Member and Executive in Residence at Callaman Ventures and is an advisory board member for multiple startups.This post was originally published on his blog, and it is republished here with permission.
The U.S. Chamber of Commerce, a 501(c)6 business association that isn�t required to disclose its donors, ranks as the top outside-spending group that is not a party committee, such as the Democratic National Committee or Republican National Committee. The Chamber has spent $35 million this election cycle on �electioneering communications,� targeted broadcast messages that include a visual or audio reference to federal candidates but don�t expressly advocate for or against those candidates.
eric seiger
Colts <b>News</b>: NFL: <b>NEWS</b>
NFL: NEWS. Seven Colts players were named to 'The Top 100: NFL's Greatest Players' in a series produced by NFL ...(11.05). GETTING THERE - . NFL: NFC NEWS - � NFL's Top 100 Players: No. 8, Peyton Manning � One on One ...
Good <b>News</b>: Bookmark-Syncing Service Xmarks Not Closing Down After All
Back in September, we heard that bookmark-syncing service Xmarks was shutting down in 2011, which came as awful news to those of us who relied on the any-browser extension to keep our bookmarks in sync no matter what browser we were ...
Small Business <b>News</b>: Building Your Small Business Empire
Thinking big in your small business will stop you from ignoring potential markets, and allow you to try those super cool ideas you might think your business is.
eric seiger
eric seiger
eric seiger
Colts <b>News</b>: NFL: <b>NEWS</b>
NFL: NEWS. Seven Colts players were named to 'The Top 100: NFL's Greatest Players' in a series produced by NFL ...(11.05). GETTING THERE - . NFL: NFC NEWS - � NFL's Top 100 Players: No. 8, Peyton Manning � One on One ...
Good <b>News</b>: Bookmark-Syncing Service Xmarks Not Closing Down After All
Back in September, we heard that bookmark-syncing service Xmarks was shutting down in 2011, which came as awful news to those of us who relied on the any-browser extension to keep our bookmarks in sync no matter what browser we were ...
Small Business <b>News</b>: Building Your Small Business Empire
Thinking big in your small business will stop you from ignoring potential markets, and allow you to try those super cool ideas you might think your business is.
eric seiger
Due diligence should always be a two-way street. A while back, I published an article on “Understanding the Dreaded Investor Due Diligence,” describing what investors do to validate your startup before they invest. Here is the inverse, sometimes called reverse due diligence, describing what you should do to validate your investor before signing up for an equity partnership.
I’ve had startup founders tell me that it’s only about the color of the money, but I disagree. Particularly if you are desperate, keep in mind the person who finds a good-looking partner to take home from the bar at closing time, but then wakes up in the morning wondering “What did I just do?” Taking on an investor is like getting married – the relationship has to work at all levels.
Due diligence on an investor is where you validate the track record, operating style, and motivation of your new potential partner. Maybe more importantly, you need to confirm that the investor “chemistry” matches yours. Here are some techniques for making the assessment:
- Talk to other investors. The investment community in any geographic area is not that large, and most investors have relationships or knowledge of most of the others. Of course, you need to listen for biases, but local angel group leaders can quickly tell you who the bad angels and good angels are, and what kind of terms they typically demand.
- Network with other entrepreneurs. Contact peers you have met through networking, both ones who have used this investor, and ones who haven’t. Ask the investor for “references,” meaning contacts at companies where previous investments were made. Don’t just call, but personally visit these contacts.
- Check track record on the Internet and social network. Do a simple Google search like you would on any company or individual before signing a contract. Look for positive or negative news articles, any controversial relationships, and involvement in community organizations. Check the profile of principals on LinkedIn and Facebook.
- Spend time with investors in a non-work environment. As with any relationship, don’t just close the deal in a heated rush. Invite the investment principal to a sports event, or join them in helping at a non-profit cause. Here is where you will really learn if there is a chemistry match that will likely lead to a good mentoring and business relationship.
- Validate business and financial status. Visit the firm’s website and read it carefully. Look for a background and experience in your industry, as well as quality and style. Conduct a routine credit and criminal check, using commercial services like HireRight. Be wary of individuals or funds sourced from offshore.
If you think all this sounds a bit sinister and unnecessary, go back and read again some of the articles about Bernie Madoff and recent investment scams. Remember, if it sounds too good to be true, it probably isn’t true. Entrepreneurs are optimists by nature, so I definitely recommend the involvement of your favorite attorney (usually the pessimist).
I recognize that it has been tough to raise capital these last couple of years, but don’t be tempted to take money from any source. This can be a big mistake, with common complaints running the gamut from unreasonable terms, constant pressure, to company takeovers. Be vigilant and ask questions.
A successful entrepreneur-investor agreement better be the beginning of a long-term relationship. If you don’t feel excited and energized by your first discussions with an investor, give it some time and do your homework. If the feeling doesn’t grow, it may be time to move on. It’s better to be alone than to wish you were alone.
Martin Zwilling is CEO & Founder of Startup Professionals, Inc.; he also serves as Board Member and Executive in Residence at Callaman Ventures and is an advisory board member for multiple startups.This post was originally published on his blog, and it is republished here with permission.
The U.S. Chamber of Commerce, a 501(c)6 business association that isn�t required to disclose its donors, ranks as the top outside-spending group that is not a party committee, such as the Democratic National Committee or Republican National Committee. The Chamber has spent $35 million this election cycle on �electioneering communications,� targeted broadcast messages that include a visual or audio reference to federal candidates but don�t expressly advocate for or against those candidates.
eric seiger
eric seiger
Colts <b>News</b>: NFL: <b>NEWS</b>
NFL: NEWS. Seven Colts players were named to 'The Top 100: NFL's Greatest Players' in a series produced by NFL ...(11.05). GETTING THERE - . NFL: NFC NEWS - � NFL's Top 100 Players: No. 8, Peyton Manning � One on One ...
Good <b>News</b>: Bookmark-Syncing Service Xmarks Not Closing Down After All
Back in September, we heard that bookmark-syncing service Xmarks was shutting down in 2011, which came as awful news to those of us who relied on the any-browser extension to keep our bookmarks in sync no matter what browser we were ...
Small Business <b>News</b>: Building Your Small Business Empire
Thinking big in your small business will stop you from ignoring potential markets, and allow you to try those super cool ideas you might think your business is.
eric seiger
eric seiger
Colts <b>News</b>: NFL: <b>NEWS</b>
NFL: NEWS. Seven Colts players were named to 'The Top 100: NFL's Greatest Players' in a series produced by NFL ...(11.05). GETTING THERE - . NFL: NFC NEWS - � NFL's Top 100 Players: No. 8, Peyton Manning � One on One ...
Good <b>News</b>: Bookmark-Syncing Service Xmarks Not Closing Down After All
Back in September, we heard that bookmark-syncing service Xmarks was shutting down in 2011, which came as awful news to those of us who relied on the any-browser extension to keep our bookmarks in sync no matter what browser we were ...
Small Business <b>News</b>: Building Your Small Business Empire
Thinking big in your small business will stop you from ignoring potential markets, and allow you to try those super cool ideas you might think your business is.
eric seiger
Colts <b>News</b>: NFL: <b>NEWS</b>
NFL: NEWS. Seven Colts players were named to 'The Top 100: NFL's Greatest Players' in a series produced by NFL ...(11.05). GETTING THERE - . NFL: NFC NEWS - � NFL's Top 100 Players: No. 8, Peyton Manning � One on One ...
Good <b>News</b>: Bookmark-Syncing Service Xmarks Not Closing Down After All
Back in September, we heard that bookmark-syncing service Xmarks was shutting down in 2011, which came as awful news to those of us who relied on the any-browser extension to keep our bookmarks in sync no matter what browser we were ...
Small Business <b>News</b>: Building Your Small Business Empire
Thinking big in your small business will stop you from ignoring potential markets, and allow you to try those super cool ideas you might think your business is.
eric seiger
Colts <b>News</b>: NFL: <b>NEWS</b>
NFL: NEWS. Seven Colts players were named to 'The Top 100: NFL's Greatest Players' in a series produced by NFL ...(11.05). GETTING THERE - . NFL: NFC NEWS - � NFL's Top 100 Players: No. 8, Peyton Manning � One on One ...
Good <b>News</b>: Bookmark-Syncing Service Xmarks Not Closing Down After All
Back in September, we heard that bookmark-syncing service Xmarks was shutting down in 2011, which came as awful news to those of us who relied on the any-browser extension to keep our bookmarks in sync no matter what browser we were ...
Small Business <b>News</b>: Building Your Small Business Empire
Thinking big in your small business will stop you from ignoring potential markets, and allow you to try those super cool ideas you might think your business is.
eric seiger eric seiger
eric seiger
eric seiger
eric seiger
Colts <b>News</b>: NFL: <b>NEWS</b>
NFL: NEWS. Seven Colts players were named to 'The Top 100: NFL's Greatest Players' in a series produced by NFL ...(11.05). GETTING THERE - . NFL: NFC NEWS - � NFL's Top 100 Players: No. 8, Peyton Manning � One on One ...
Good <b>News</b>: Bookmark-Syncing Service Xmarks Not Closing Down After All
Back in September, we heard that bookmark-syncing service Xmarks was shutting down in 2011, which came as awful news to those of us who relied on the any-browser extension to keep our bookmarks in sync no matter what browser we were ...
Small Business <b>News</b>: Building Your Small Business Empire
Thinking big in your small business will stop you from ignoring potential markets, and allow you to try those super cool ideas you might think your business is.
big seminar 14
There is no single easiest way to make money on the internet. However, there are a couple methods that have been proven successful and require very little and effort. Some of the best home based business opportunities that are available on the internet are also the easiest way to make money on the internet. There are three methods of making money on the internet that are both easy and popular methods of doing so.
1. Selling Actual Items
One common way of making money on the internet and what has been one of the most common and profitable home based businesses is utilizing auction sites to sell products. For many people, they avoid other types of internet marketing because they feel this is the easiest way to make money on the internet and they are likely correct. Auction sites are fairly expensive and there is an actual product that must be purchased first to sell but the features of the auction site make them incredibly easy to use. For someone looking for a small amount of revenue and a decent return of investment, auction sites are the easiest way to make money on the internet.
2. Selling Advertising Space
Another common way to make money on the internet that is easy is selling advertising space on one's website. This is easy to setup and incredibly passive once setup. Using Google AdSense or a comparable product from another advertising host, people that click on ads on a person's site net that person income from each of those clicks. For the person that has a significant amount of traffic already, this is the easiest way to make money on the internet for those with an established presence.
3. Affiliate Marketing
For the entrepreneur, the easiest way to make money on the internet is to setup affiliate marketing accounts and begin advertising and building a website to get people to that affiliate. Affiliates pay per sale and the payouts are typically fairly generous. Most of the top home based businesses are now affiliate marketing campaigns simply because there are always new affiliates to market and an almost unlimited number of keywords to build the affiliate campaign around.
All of these systems are very popular and well known and yet everyday beginning internet marketers continue to plant the seed of success. Because of the wide reach of the internet and the diversity of methods that exists online, making money can be achieved easily whenever one would like to start. In other words internet marketing is guaranteed method of wealth creation as long as you educate yourself about internet marketing or seek the help of a guru or make use of the numerous resources available online for those who are just beginning to learn how to make money online.
Visit the Super Affiliate Handbook Review and learn more about how to start making money with an internet business ideas.
eric seiger
Colts <b>News</b>: NFL: <b>NEWS</b>
NFL: NEWS. Seven Colts players were named to 'The Top 100: NFL's Greatest Players' in a series produced by NFL ...(11.05). GETTING THERE - . NFL: NFC NEWS - � NFL's Top 100 Players: No. 8, Peyton Manning � One on One ...
Good <b>News</b>: Bookmark-Syncing Service Xmarks Not Closing Down After All
Back in September, we heard that bookmark-syncing service Xmarks was shutting down in 2011, which came as awful news to those of us who relied on the any-browser extension to keep our bookmarks in sync no matter what browser we were ...
Small Business <b>News</b>: Building Your Small Business Empire
Thinking big in your small business will stop you from ignoring potential markets, and allow you to try those super cool ideas you might think your business is.
eric seiger
Colts <b>News</b>: NFL: <b>NEWS</b>
NFL: NEWS. Seven Colts players were named to 'The Top 100: NFL's Greatest Players' in a series produced by NFL ...(11.05). GETTING THERE - . NFL: NFC NEWS - � NFL's Top 100 Players: No. 8, Peyton Manning � One on One ...
Good <b>News</b>: Bookmark-Syncing Service Xmarks Not Closing Down After All
Back in September, we heard that bookmark-syncing service Xmarks was shutting down in 2011, which came as awful news to those of us who relied on the any-browser extension to keep our bookmarks in sync no matter what browser we were ...
Small Business <b>News</b>: Building Your Small Business Empire
Thinking big in your small business will stop you from ignoring potential markets, and allow you to try those super cool ideas you might think your business is.
eric seiger
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