I Spy a Secret Got a skeleton in your closet? Bring it out before seeking VC.

Planning to seek venture capital? Be forewarned: Before VCs invest in you, they'll probably investigate you.

VC firms performing due diligence on companies they are considering funding isn't new, but there's been an influx of new entrepreneurs approaching VCs--who do not know them--with blind pitches. VCs are trying to size up both their financials and their character. "The lion's share of [VCs'] due diligence is conducted on the people themselves," says Angelo Santinelli, business professor at Babson College and a former VC.