The Four Simple Steps to Take Before Making a Deal

Pitch meetings can be exciting affairs.

The passionate founders, the suspense of the hot seat, the back-and-forth volleys of questions and answers, the very real potential of changing people's lives forever...

It's no surprise that the TV show Shark Tank is so popular.

But what you don't see on television is what happens behind the scenes: the homework, or due diligence, angel investors do to ensure startups and their founders are legit.

Some angels spend weeks or months digging into a startup's nooks and crannies, from balance sheets to background checks. Others rely on gut instinct above all else.

It can be an overwhelming amount of information, but today I'll boil it down to four key steps successful angel investors follow before investing even a penny.