Checkout the investor; they’re going to be checking out you. It’s a two-way street.

After all, where you get the money from can be even more important than how much money do you get. Getting a lot of money, but coming from the wrong party, could make your business life a nightmare over the next few years.

So, what kind of things might you checkout in order to qualify the investor?

1. What industries have they invested in? Is it similar to your industry? Will they be able to add value through your industry experience?

2. What is their style? Are they a financial investor or do they like to get actively involved? If you think you are going to get a financial investor and it turns out to feel like the second coming of your mother-in-law, you could be in for a tough go.

3. What kind of contacts could they bring in? Are you looking for an investor who can help open doors for you?

4. Who is involved in their firm? Who sits on the board?

5. What stage do they typically get in to an investment? You want somebody who fits your particular stage of the investment. If you’re looking for early private equity, you don’t want to be looking at somebody who puts in money later in the game.

6. How long is their investment horizon? In other words, how long do they stick with investments? If you think about approaching a hedge fund, you might not find too long of an appetite and you’d better make sure your venture is one that is going to be able to hit its targets very quickly.

7. How do they typically exit? Is it through a strategic buyer or is it through going public or finding another financial buyer?

8. What does your gut tell you when you meet them face to face? It is one of your closest working relationships you’ll have in your business. You need to be very, very comfortable.

This has been some food for thought to give you ideas for checking out the investor. Make sure you know who you’re getting in bed with. It will be one of the most important partnerships you ever have.