Think of selecting the right funder as choosing the right partner to marry. This is your pre-marital test before you sign a term sheet and discover you married the wrong partner with your cap table as dowry.
1️⃣ VALUES ALIGNMENT (The Soul Check)
Ask yourself:
✅ Do we both respect ethics over speed?
✅ Do we agree on truth over spin?
✅ Do we value sustainability over spectacle?
✅ Do we define success similarly?
✅ Do we both hate shady shortcuts?
If value systems clash —
the term sheet will too.
2️⃣ RISK APPETITE MATCH
Everyone loves risk in pitch decks.
Few love it in real life.
Ask:
✅ Are they comfortable with slow, steady growth?
✅ Do they expect blitz-scaling?
✅ Can they survive bad quarters emotionally?
✅ Are they gamblers or builders?
Mismatch here = daily stress.
3️⃣ TIME HORIZON ALIGNMENT
Some investors play chess.
Some play ludo.
Ask:
✅ Are they long-term oriented?
✅ Do they pressure for fast exits?
✅ Do they understand compounding?
✅ Are they building legacy or lottery?
4️⃣ CONTROL PHILOSOPHY
Ask early. Don’t pretend.
✅ Do they trust founders?
✅ Do they interfere or advise?
✅ Are they comfortable without daily visibility?
✅ How do they behave during failure?
Money and control have a toxic love child.
Test early.
5️⃣ COMMUNICATION STYLE MATCH
Watch:
✅ Do they listen?
✅ Do they interrupt?
✅ Are emails clear or chaotic?
✅ Are they calm or dramatic?
If communication strains now —
it will break under pressure.
6️⃣ DECISION-MAKING STYLE
Observe:
✅ Thoughtful or impulsive?
✅ Data-driven or ego-driven?
✅ Patient or impatient?
✅ Consensus-seeking or commanding?
If they bulldoze decisions —
they will bulldoze you.
7️⃣ ETHICS UNDER PRESSURE
Ask indirectly:
✅ Will they protect the company’s reputation?
✅ Will they cut corners for returns?
✅ Will they dump you publicly in failure?
✅ Will they support you through lawsuits or losses?
True character shows when money is at risk.
8️⃣ SUPPORT QUALITY, NOT QUANTITY
Can they provide:
✅ Mentorship
✅ Contacts
✅ Strategy
✅ Emotional support
✅ Pattern recognition
Or is their entire contribution:
💰 money + opinions?
9️⃣ BOARDROOM BEHAVIOUR
Ask founders they’ve funded:
✅ Do they dominate meetings?
✅ Do they add value?
✅ Do they derail strategy?
✅ Do they show up late?
✅ Do they ghost during trouble?
Past behaviour = future experience.
🔟 REPUTATION CHECK
Do your homework.
✅ Speak to 2–3 founders
✅ Read online footprint
✅ Ask about conflicts
✅ Verify exits
✅ Observe how they treat failure
No references = red flag.
1️⃣1️⃣ RESPONSE UNDER BAD NEWS
Test the waters.
Share small bad news early.
Observe:
✅ Do they panic?
✅ Do they blame?
✅ Do they advise?
✅ Do they disappear?
Micro-test now.
Avoid macro-regret later.
1️⃣2️⃣ ALIGNMENT ON FRUGALITY
Critical for Indian founders.
✅ Do they respect capital efficiency?
✅ Or push burn culture?
✅ Do they reward profitability?
✅ Or shame caution?
Wasteful investors create dependent founders.
1️⃣3️⃣ CULTURE SENSITIVITY
Ask:
✅ Do they respect employees?
✅ Do they discourage toxicity?
✅ Do they support founder wellbeing?
✅ Do they value mental health?
A toxic board infects the company.
1️⃣4️⃣ EXIT EXPECTATIONS
Clarify:
✅ Time horizon
✅ Exit pathways
✅ Acquisition mindset
✅ IPO fantasies
Misaligned exits kill relationships.
1️⃣5️⃣ YOUR GUT FEELING (Don’t ignore this)
After meetings, ask:
✅ Do I feel calmer?
✅ Or pressured?
✅ Clear?
✅ Or confused?
✅ Empowered?
✅ Or diminished?
If something feels off —
it is.
🧠 FINAL TEST
Would you go into business with this person if there were no money involved?
If NO —
don’t accept their money.
✅ THE GOLDEN RULE
Choosing an investor is not fundraising.
It is partnership selection.
Choose wisely.