Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In running an angel network, it’s important to set up a due diligence process.

Diligence can take a substantial amount of time, so there needs to be a prescribed process for the members to follow.

The process needs to be led by those with experience in diligence and startup investing.

It starts with gathering core documents such as historical financial statements, patent filings, entity filings, and other relevant documents.

There’s a quantitative aspect to diligence to verify what you think you know about the business.  

For example, if the company claims to have a Delaware Corporation, then there should be documentation confirming that.

There’s also a qualitative aspect to diligence such as assessing the skills of the team.

This requires interviewing the team members, the business goals, and then making a judgement call about the skills required.

Someone needs to lead the diligence.

It could be the manager of the group or a member who is particularly knowledgeable about the sector.

Some groups use university students for the analysis phase of the process.

Members often tap contacts who are domain experts to review the technology or the business model. 

The diligence team compiles a report with the findings and recommendations to provide to the rest of the group.

Findings from the diligence process often impact the valuation and terms used in the term sheet.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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In this episode, Hall welcomes Tom Wisniewski, Co-founder and Managing Partner at Newark Venture Partners.

Newark Venture Partners identifies, invests in, and supports the best in class B2B software founders from all over the country as they build innovative solutions for some of today’s most complex business challenges. They lead or participate in Seed rounds with investments of up to $2 million.

Tom previously founded the RosePaul family office, and RP Ventures which has invested in 20+ tech start-ups. Notable exits include Pond5 (to Accel Partners and Stripes Group), LiveLOOK (acquired by Oracle), Kanvas (acquired by AOL), Anvato (acquired by Google), Cannonball (acquired by Google), Confirm.io (acquired by Facebook). In addition, RosePaul is a Limited Partner in leading venture funds such as Greycroft Ventures, ff Venture Capital, ERA Accelerator.

Tom is an active member of the NY Angles, the Black and Latino Angel Investment Fund, and a Board Member of the New Jersey Innovation Institute. Across Tom's many roles, he works to deepen collaboration within the Newark/NYC tech ecosystem, create opportunities for founders, and mentor diverse entrepreneurs and investors.

Tom has an MBA from Dartmouth and a BA in Physics and Philosophy from Clark University.

Tom advises entrepreneurs and investors, discusses the state of startup investing and how he sees it evolving, and shares his investment philosophy.

You can visit Newark Venture Partners at www.NewarkVenturePartners.com and www.newark.vc, via LinkedIn at www.linkedin.com/company/newark-venture-partners, and via Twitter at www.twitter.com/NewarkVc.  

You can contact Tom via email at tw@newark.vc, via LinkedIn at www.linkedin.com/in/thomaswis/, and via Twitter at www.twitter.com/thomaswis. 
_____________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please subscribe, share, and leave a review.

Music courtesy of Bensound.