Angel Investing Course - Due Diligence: Evaluating Investment Opportunities - Student Edition - Paperback

by Christopher Mirabile (Author), Hambleton Lord (Author)

For some reason, in life it seems like it is always faster to imagine the obvious ways something might work than it is to grasp the sometimes subtle and complex ways things could go wrong. Perhaps people are optimists, or perhaps it is the tendency to want to believe an earnestly and passionately-told story from someone who is betting their livelihood on it.

But whatever the reason, more time spent on due diligence always yields a more balanced and nuanced view. Additional time allows you to get the perspective of different experts, spend time with the team, educate yourself on the market, understand the psyche of the target customer. If you do not take the time to put in a little work, you are just making a blind bet during that overly optimistic honeymoon phase, and you are giving up the chance to consider very easily-discovered issues and to ponder whether it is realistic to expect a team to work around them.

There are two main sections in this book. The first section includes the slides for a high level, 30 minute introductory class that we call the "Fundamentals of Due Diligence". This class will introduce you to the three key steps of effective due diligence:
- Identifying Key Risks
- Developing the Investment Thesis
- Acknowledging "What Needs to Be Believed" to Invest

The second section includes the slides for an in-depth, 2 hour class that we call the "Essentials of Due Diligence". In addition to covering some of the materials discussed in the introductory class, we dig deep into helping you understand the types of questions we recommend you ask during diligence, major risks that should concern you, and how to structure deals to work well for founders and investors. The course will provide detailed material in four main areas:
- Team
- Product
- Market
- Financials

In addition to these two slide decks, we include an appendix with templates that help facilitate the due diligence process. In the appendix you will find:
- Due Diligence Report Template
- Due Diligence Checklist
- Customer Reference Check Questionnaire Management Assessment Questionnaire

By mastering the materials in this book, you should be confident that you can pull together a well executed due diligence effort that will ultimately lead to helping you increase the financial returns from your angel investments