Geri Stengel

 
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How To Ensure An Angel Or VC Is The Right Match For You

Like marriage, the relationship between an entrepreneur and her investor can go wrong. The relationship is more than just money and it’s important to know if you’re compatible. “You may not be getting married forever, but you are shacking up for a long time,” said Lori Hoberman, Chair of the Emerging Companies / Venture Capital practice, Chadbourne & Parke.

Your investors are going to get to know you beyond just reading your pro formas and talking with you. You need to get to know them. “When an entrepreneur takes outside capital it’s the start of, in most cases, a good long-term relationship,” said Adam Quinton, active angel investor and CFO of NopSec, which identifies and fixes IT security vulnerabilities. “But all relationships can go sour.”

Read all of How To Ensure An Angel Or VC Is The Right Match For You on Forbes.com

Photo Credit: Daniel P. Fleming