How to Vet Your Investors and Why You Must

This article was originally published on Pioneers Post.

What early-stage social entrepreneurs are often too afraid to ask—but should

In the arena of impact investing and social entrepreneurship, the most successful investor—investee relationships function like a partnership of equals, not unlike a marriage. Too often, however, a perceived power imbalance disrupts this dynamic: Investors write the checks, so they’re in control. It’s not surprising that many entrepreneurs become intimidated in this context. The reality is that the relationship is (read: must be) a two-way street.

At FINCA Ventures, I work day in and day out with early-stage social entrepreneurs, leading all aspects of the investment process, from pipeline development, to due diligence, to portfolio support. As an investor, I spend my days peppering potential investees with loads of questions. However, it’s worthwhile to pull back the veil that cloaks investors in our space and give entrepreneurs some practical tips so that they are empowered to conduct the same due diligence on their potential investors.

Read the rest of the article on Pioneers Post.

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