Many angel investors will tell you, that of the hundreds of business plans they receive each month, only a handful address the due diligence process. Investors will always allow a little puffery in a business plan, but they’ll also want to see the “proof in the pudding”, before any money changes hands. This is commonly referred to in the investment world as doing their “due diligence”.
What is due diligence? Well, let say, you’ve just created the world’s first time machine, but it’s still only on the drawing board. Now, you need an angel investment to procure a few items to test it:
- 1981 DeLorean DMC-12 sports car;
- Photo-electric Chemical Power Converter (converts radioactive plutonium to electricity);
- Flux Capacitor (releases 1.21 gigawatts of energy in a millisecond);
- Plutonium (be careful or you’ll get a visit from Homeland Security);
- Blueprints for construction;
- Well documented preliminary test results and planned prototype testing;
- Michael J. Fox to test drive it “Back to the Future”.
To read the full, original article click on this link: What is Due Deligence? | Christian Angel Capital Network
Author: Bill
