What to Check Before You Buy an Angel Investor Database

There are several aspects you should considercompany with no experience in working with the
before purchasing an angel investor database.  Inprivate equity asset class--whether it is private
this article, I will identify some of the key aspects toequity, venture capital or angel investing--then you
think about before buying an angel investorshould be extra stringent in examining the quality of
directory. the database before hand.
- Cost:  This is probably the most important- Can you get a sample?  Some database providers
consideration, especially if you are a small business orwill not provide a sample of the listings.  I find this
entrepreneur.  Sole proprietors and small businesseshighly suspicious and would not work with a company
are often particularly cost-conscious.  So, this maythat did not let the client see what he or she is
be the first thing you look for in an angel directory. getting.  This is often a big purchase for a small
If this is the case, give the most weight to thiscompany and I always treat it as such, so why not
aspect because you don't want to overpay.  Mostshow the firm what it is getting in the directory? 
databases provide you with the cost up front, if it isUsually a firm that does not show sample listings is
hidden or in a complicated payment structure it istrying to hide the quality of the directory or the
probably not a trustworthy directory and not worthformat.
your investment.Hopefully these tips make it easier for you to
- Organization that created the directory:  Youpurchase an angel investor directory and most
should consider who created the directory.  If it is aimportantly, to be happy with that purchase.