Good advice. BTW, it applies to angel investors, as well. Which seems like less of a big deal, and I don’t know if you have to do thorough reference checks, but you should understand who you’re doing business with.

I once let someone I didn’t know into a big round. They were a friend of a friend and looked legit. But it was the only time I’d ever had an investor I didn’t know, and it led to the only time (years later) I had an investor threaten to sue me.

We resolved it amicably, as it was due to some misinformation he’d received. But it would have saved everyone a lot of stress if he’d called me when he heard it instead of his lawyer.