Due diligence checklist
– Talk to CEO
– Talk to heads of sales in each region
– Talk to customers
– Talk to end users (since sometimes the customers are resellers)
– Do background checks on CEO, CFO, heads of sales
– Talk to all of the other investors
Although my general rule of thumb is, I don’t want to have any meetings. You know the secret to a quick meeting? No chairs and no donuts. Even quicker? Just use the phone and stay at home. That’s my meeting of preference. With the above checklist I actually think angel investors have a strong edge over “professional” venture capital investors. They have a strong network but good angels have a strong network too (particularly with the rise of companies like AngelList). And if you follow rule No. 1 and piggyback with the best venture capitalists, then it’s the best of every world. And look, the more VCs who make money, the more I will. On top of that, I hope to God we have a pretty strong bubble. Go Groupon!