Analyzing the startup before investment
Due diligence is an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term is more commonly applied to voluntary investigations.
One of the golden rules which many angel investors follow is that 20 hour of due diligence should be used per company, per round to increase the possibility of success. Inadequate pre-evaluation and analysis are one of the main reasons why startup investments fail.
FiBAN has a lot of material and best practices shared to support the due diligence process. FiBAN partners also offers services to support this process which are described in the partner services site.