Last week we were invited to meet with Dallas-Fort Worth area angel investors and present ideas on how angels can take a more active role in performing due diligence prior to making investments.
The event was hosted by Joe Payton, owner/founder of GeniusDen, a Dallas coworking space and business incubator.
The presentation was based around the premise that hearing a startup founder’s impassioned pitch is often compelling enough to inspire an angel to invest, but should be taken as just one part of a multi-step decision process. While VC firms routinely apply the concept and practice of due diligence to guide and inform their investment decisions, it is not as obvious nor as widely employed as it should be at the angel stage of investing. Bizologie presented the various parts of the due diligence process one should consider before making an angel investment, from free financial data sources to licensed tools available to advanced investors. Attendees learned what pieces of information are necessary to create a full portrait of a potential investment before writing the check.
Thanks to GeniusDen for sponsoring such a great event!