A common thread running through deals is investor confidence in the founder of the venture and gut instinct. Internet companies are hot in the investor community with more experienced investors now funding these ventures, but less seasoned investors continue to invest as well. The key issue for entrepreneurs is preparation. Don't present valuations of your venture that are sky high. Remember that if your deal works, everyone can be happy.
Due diligence is a two-way street.
There's a lot of money out there in the angel ranks, but entrepreneurs should carefully lay the groundwork before they approach angel networks, Schirmer stressed. Colorado Capital Alliance is funded through service fees, publication and seminar sales, and corporate sponsorships. The network hosts private investor seminars and has published a book for business angels in keeping with its focus on educating investors. The Alliance's book, Business Angels, A Guide to Private Investing, sells worldwide and was recently reviewed in Money Magazine .