As an early stage investor, I spend hours of time conducting due diligence on a company before making the decision to invest. Of course, that diligence involves digging into much of what you might see in a pitch deck, such as the company's market opportunity, competitive landscape, milestones achieved, team, marketing strategy, and financial projections. Additionally, I review the company's footprint on the internet, i.e. their website, app (if applicable), and social media (e.g. Facebook, Twitter, Instagram, PInterest, LinkedIn, YouTube).
But, if you think that an investor or strategic partner like me is only researching your company, you're mistaken. Reviewing the publicly available information on a company only tells me part of the story. I'm researching you too. Just as you are researching investors to determine potential fit, we are researching you.
Believe it or not, I look through your personal feeds (Twitter, Facebook, etc.), and I'm looking for red flags. If you're posting something nasty or your content is overly controversial, I'm staying away. For example, I once conducted due diligence on an entrepreneur before going on CNBC's PowerPitch. I found the entrepreneur's comments about his ex-wife to be especially inappropriate given that he had young children. Needless to say, when asked whether I was IN or OUT on the company, I was OUT.
Read MoreWhen diligencing an investment opportunity in the early stages, the entrepreneur is the company. Your work ethic, integrity, and people skills become the basis of the company culture. While reviewing a pitch deck and conducting company analysis are key, so is understanding first and foremost who is driving the business...
