If you’re looking to gain anything over 25$, you’re going to be asked where the money is going. This fact can be applied towards family and friends, but especially if you are asking for a loan from a bank.

Entrepreneurs have numerous options for obtaining funding to explore and validate their startup concept.

Seed funding has become the ‘participation award’ of startups.  While getting started is easier than ever, ultimate success is tougher than ever.

As Angels and VCs are tightening their fists, entrepreneurs are less likely to get next stage funding. Having a great team, pitch and front man are simply not enough.

One or two of every ten investments bring most of the returns to the portfolio of an angel investor, and it’s difficult to determine which of the companies will provide the returns.

David S. Rose, the CEO of Gust and Founder of the New York Angels defines Due Diligence in his book, Angel Investing – The Gust GUIDE TO Making Money and Having Fun Investing in Startups. The careful investigation into a company prior to making an investment.

I can confirm that not only will you increase your network with more successful individuals, you’ll form great relationships, learn from others about what it takes to become a great investor, and (maybe) get an early entry into the exciting and inspiring world of venture investing. You’ll also get a better sense of the big picture of the whole investment cycle.

Concept stage startups are usually funded by entrepreneurs, family, friends and individual angels. An opportunity has presented itself to you, an idea for a scalable business you see clearly in your mind. How much is your idea worth?  It all depends on what you do with it.

The entrepreneur seeking investment should recognize the advantages of obtaining such an investment. However, the endeavor needs entrepreneurs to have a strong understanding of their objectives, opportunities, strategy, and fit with potential corporate partners.

If this research were to uncover the ‘secret sauce’, entrepreneurs could prepare accordingly and drastically increase their probability of successfully acquiring the funding.