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Look 'Em in the Eyes

Before doing business with an investor you found while surfing the Net, here's what to look out for.

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This story appears in the September 2000 issue of Entrepreneurs Start-Ups magazine.

Surfing the Internet for investors? Watch out for sharks. Sure, the Net can be an efficient tool for finding legitimate investors, but online scams abound. So do your homework. No sensible investor would risk putting money into any venture before researching the business and its owner, so why not investigate them? Here's what you can-and should-do.

1. Thoroughly check out any Web site or investor before signing anything, accepting any funding or paying any fees. Get verifiable answers to such questions as:

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