How Do Individual Angels, Angel Syndicates and Corporate Angels Do Due Diligence of Investment Proposals?

The Business angels do due diligence of a proposal only when they seriously consider it for investment. This paper discusses the way Individual angels, Angel syndicates and Corporate angels do due diligence of investment proposals. It is noted that the most important part of due diligence for Individual Angels is to establish a personal chemistry with the entrepreneur or rely upon their own gut feeling. While the nature of due diligence as reported by Syndicate gatekeepers is more professional, systematic and rigorous, Corporate angels are the most sophisticated in their due diligence with a proper understanding of the complexities and the costs involved with due diligence. The research findings here are an outcome of semi structured interviews conducted with the three types of angels.