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How do I check out potential Angel Investors?

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So you?ve found your angel and you?re ready to make it official. Before you align yourself, your business, and your reputation with an investor, it pays to do some digging of your own into their background and track record. Here are five pointers:

Perform routine credit checks. There are several due diligence and investigative firms that offer these services for a modest price. These firms can also research a person?s criminal record.
Ask for references. Upstanding investors are willing and eager to share their portfolios and sometimes list the companies they?ve backed on their Web sites. Get the names and then contact the CEOs.
Hire an attorney to spend 30 minutes reviewing your situation now. Many lawyers will offer a free initial consultation.
Protect intellectual property. Investors don?t need to know the intricacies of how your product works. Legitimate investors will be satisfied with a demonstration. Do not turn over inventions or software. And remember that you always run the risk of someone else beating you to the marketplace.
Join a nonprofit venture association where you can meet with other entrepreneurs, investors, attorneys, and CEOs.

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