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5 Founder Due Diligence Checks for Angels

Essential techniques for angel investors to verify founder backgrounds and assess founding team credibility using public data.

5 Founder Due Diligence Checks for Angels

Angel investors are ultimately betting on founders. Beyond Companies House filings and financials, you need to verify founder backgrounds and assess team credibility. Here are five essential checks to validate founder claims and identify warning signs before backing a startup.

Check 1: Verify Founder Background Against LinkedIn

LinkedIn is the first stop for founder verification.

What to validate:

  • Employment history: Does pitch deck education and previous roles match LinkedIn profile?
  • Timeline gaps: Missing periods between jobs may indicate failed ventures or career breaks
  • Sector experience: Do founders have relevant industry knowledge for their startup?
  • Network quality: Do they have connections to reputable investors, advisors, or peers?
  • Profile recency: Updated profiles suggest active professionals; neglected profiles suggest disengagement

Red flags:

  • LinkedIn profile created recently (may hide problem history)
  • Minimal connections despite claimed network
  • No recommendations or endorsements from colleagues
  • Employment dates that don't align with pitch deck claims

Pro tip: Check founders' previous companies on Companies House. Look for exits or dissolved companies.

Check 2: Cross-Reference Companies House Director History

Every UK founder has a public director record on Companies House.

What to search:

  • Director appointments: Check all companies where founder has served as director
  • Dissolution patterns: Were previous companies dissolved normally or after insolvency?
  • Disqualifications: Search GOV.UK register to confirm no disqualifications
  • Filing compliance: Did founder manage previous companies with timely filings?
  • Number of companies: Many simultaneous directorships may indicate spread too thin

Red flags:

  • Multiple dissolved companies (especially within 3 years of each other)
  • Disqualified directors register (serious red flag)
  • History of late filings or Companies House penalties
  • Recent removals from other companies

Action: Request explanation for all dissolved companies. Ask: "Why did it fail and what did you learn?"

Check 3: Verify Education and Credentials

Don't accept credentials without verification.

What to check:

  • Degree claims: Confirm university attendance via institution websites or LinkedIn verification
  • Professional qualifications: Validate claimed certifications (PMP, CPA, etc.)
  • Honors and awards: Search online for verification of claimed achievements
  • Speaking engagements: Verify claimed conference talks or thought leadership

How to verify:

  • Contact university alumni office for degree confirmation
  • Check professional body registries (CPA, chartered accountant, etc.)
  • Search major conference speaker directories
  • Look for articles or speaking engagements on company website

Red flags:

  • Cannot verify degree claims
  • "MBA from Stanford" (prestigious claim) but no online verification
  • Claimed awards not found via Google search
  • Inconsistencies between pitch deck and LinkedIn credentials

Check 4: Assess Founder Network Through Board and Advisors

Who founders have connected with reveals credibility.

What to look for:

  • Board members: Do they have relevant startup or sector experience?
  • Advisory board: Are advisors credible figures in the market?
  • Early investors: Who backed the round? Recognizable VCs or angels?
  • Previous investor connections: Have they worked with this founder before?

Validation steps:

  • Search advisors' LinkedIn for relevant background
  • Google "[advisor name] + startup board" to find their board history
  • Check whether advisors are known in the market (not just listed on website)
  • Verify advisor engagement by looking for company mentions in their recent activity

Red flags:

  • Advisors with no verifiable background
  • Advisors who don't respond when contacted
  • Famous names claimed as advisors but not listed on company website
  • Advisors also advising 20+ other startups (likely not actively involved)

Check 5: Look for Founder Persistence and Learning

Founders' track record shows capability.

What signals demonstrate commitment:

  • Previous exits: Have they successfully founded before? Sold companies?
  • Industry tenure: Deep experience in sector vs. random startup idea
  • Founder tenure: How long have co-founders worked together?
  • Market validation: Evidence of customer traction or paid pilots
  • Investor pedigree: Have respected investors backed them?

Investigation techniques:

  • Search for founder mentions in TechCrunch, industry press
  • Look for historical startup news about their previous companies
  • Check Crunchbase for their profile and past companies
  • Search LinkedIn for endorsements from notable figures

Red flags:

  • First-time founder with no business experience in sector
  • Founder juggling multiple startups or external roles
  • Recent addition to team (replace original founder?)
  • No evidence of customer validation or pilot sales

Free Tools for Founder Verification

Essential resources for angel investors:

  • LinkedIn: Verify education, employment history, network
  • Companies House: Director history, disqualifications check
  • GOV.UK Register: Disqualified directors database
  • Google Search: Verify credentials, awards, press mentions
  • Crunchbase: Founder profile, previous companies, exits
  • Twitter/Company website: Verify advisor engagement and company claims

Founder Red Flag Checklist for Angels

Before backing a founder, verify:

  1. ✅ LinkedIn profile aligns with pitch deck claims (education, experience)
  2. ✅ Companies House shows no dissolved companies or late filings
  3. ✅ No disqualifications or removals from director register
  4. ✅ Board and advisors are verifiable and credible
  5. ✅ Evidence of previous success or relevant sector experience
  6. ✅ Early customers or pilot evidence, not just idea stage

Red flag threshold: 2+ concerns = request explanation or pass on deal.

Common Founder Verification Mistakes

Mistake 1: Accepting Claims Without Verification

Don't assume credentials are true. Check independently.

Mistake 2: Missing the Director History

A founder's track record with previous companies is public—check it.

Mistake 3: Ignoring Founder Network

Who backs the founder and who advises them reveals credibility.

Mistake 4: Not Checking for Disqualifications

Disqualified directors cannot legally manage UK companies.

Summary

Angel investors should conduct five essential founder verification checks:

  1. LinkedIn verification: Confirm education, experience, and network
  2. Companies House director history: Check previous companies and filing compliance
  3. Education and credentials: Validate degrees and claimed awards
  4. Board and advisor credibility: Verify experience and engagement
  5. Track record of persistence: Look for previous exits, sector experience, customer traction

These checks help founders' claims early, reducing investment risk.

Ventur helps investors verify founder backgrounds and check Companies House director history automatically. Request a founder due diligence report.

Questions? Email hello@venturhq.co.uk