By Vadim Kotelnikov, Inventor, Author, and Founder, Ten³ BUSINESS e-COACH – Innovation Unlimited, 1000ventures.com

"Money is a good servant but a bad master." – quoted by Bacon

Check out Business Angel Investors        Check out Venture Firms        Check out Banks

Finding suitable venture capital investors is one of the biggest challenges for the entrepreneur in a company's early stage. Not all money is the same. "You can divorce your spouse, but you can't divorce your investor", say venture capitalists. So, be very selective and try to find investors who would add not only money but also great value to your venture.

Checking out Business Angel Investors

Adapted from "Angel Investing", by Osnabrugge, M.V., and Robinson, R.J.

Due diligence is a two-way street. Although entrepreneurs may be hesitant to check out potential business angel investors for fear of possibly turning away committed funds, it is imperative that they learn as much as possible about the person to whom they are selling part of their company. Every entrepreneurs should ask:

• Are the investor's motivations in line with what we can realistically offer?

• Is the investor's personality compatible with mine?

• Does the investor share the same goals I have?

• What other firms has the investor funded in the past? How did they turn out?

• How active was the investor in those firms?

• Did the investor make constructive contributions?

• What do entrepreneurs in those firms (especially those that failed) say about the investor?

• Did the investor stick with the firms in times of trouble?

• What industries does the investor have experience in?

• Does the investor understand this firm's industry sector? Can he or she contribute to this area?

• How helpful will the investor be in trying to obtain future rounds of financing?

• Does this investor have the expertise, contacts, and reputation to attract other potential investors and build the firm?