Know Your Investors: Fundraising Isn't Just About Money

In the current environment, the way to raise capital has changed with greater numbers of angel investors and more competition among venture capitalists. Today, entrepreneurs are faced with more and more options, which means more decisions. Taking money is like getting married; your investors are your partners. Pick investors as carefully as you would a co-founder. Entrepreneurs should do diligence on their investors and find out if they will be there when times are tough. Understand how to differentiate between investors and determine the right number of investors for your seed round. Learn the difference between angels, super angels and venture capitalists. Ensure that your investor's incentives are aligned with yours so that they help make your company the next big thing. Understand the market and what is a “good” valuation and what are “standard” terms. Figure out how to create a syndicate that positions your company to succeed. Come armed with your questions on anything from basic investment and venture capital terminology to decisions you’re trying to make to help your company grow.