∞Direct answer
Direct answer
Before an intro, run a small check. Confirm the firm, person, and stated fit. Ask for a work reference only when it can close a real gap. Tell people why you ask. Save the source, date, and limit. This can make the next step safer. It cannot show that a deal is good. It cannot show that a fund will invest.
Name the job
Write down the choice first. Here, the choice is whether an intro is fair to both sides. It is not a full choice to invest.
Write three short checks. Check the firm and role. Check one work claim. Check any stated conflict or limit.
Keep the first pass small. A long list can slow the work. It can also pull in facts you do not need.
- Choice: make, pause, or decline an intro.
- Claim: a fact that needs a source.
- Source: a public record, file, or named person.
- Limit: what the check cannot show.
Check identity apart
Do not use only a phone number or web link from one note. The SEC warns that a scammer can copy real firm names, sites, and public data. It says to use a number or site you find apart in the firm’s Form CRS. [3]
For a US adviser, Investor.gov links to IAPD and, when needed, BrokerCheck. These tools can show a licence, work past, and any past discipline for a person or firm. [2]
For a UK firm, the public record can show an address, start date, officers, files, charges, old names, and insolvency. This is a record check. It does not show the firm is good now. [4]
- Find the firm site yourself.
- Match the firm, person, role, and web domain.
- Save the public record and date.
- Pause if names, roles, or contacts do not match.
Ask fair work references
Ask the founder before you call a work reference. Say who you are, why you call, and what you will save. Ask about work, not gossip.
Ask what the person saw. Ask for one case. Ask what was hard, what changed, and what they cannot check. Do not ask them to guess a gain or back the deal.
If GDPR covers your notes, set a clear use. Keep facts right and only save what you need. Set a day to check or delete the note. These are GDPR rules, not legal advice for each case. [5]
- What was your work link to the founder?
- What work or result did you see?
- What claim can you back with one case?
- What key fact can you not check?
Make a clear call
Mark each check as yes, no, or more work. Add the source, date, and a short why. Do not treat no reply as a good sign.
A work reference is one input. Due diligence means fuller checks before an investment. The SEC says private deals can give less data. It also says deal papers may not get a regulator review. Check the firm, risk, and files apart. [1]
Pause an intro if identity is not clear, a key claim lacks proof, or a conflict is not clear. A pause is not a blame. It gives both sides time to check facts.
- Make: key facts are clear for a first talk.
- Pause: a key fact needs proof or more detail.
- Decline: fit is not there, or facts conflict.
- Check again: update the note if facts change.
FAQ
Frequently asked questions
Should I ask for a work reference before each intro?
First check identity and fit. Ask for a work reference when it can close a key gap. The depth should fit the risk, time, and aim of the intro.
What if a founder will not give a reference?
Do not force it. Ask what fact the person would prove. You may use a public record, a file, or a later check. Save the open point.
Does a public record show that a startup is sound?
No. A record can show facts it holds. It does not show product worth, sales, price, or what will happen next. UK firm data has a set public scope. [4]
Are web reviews enough?
No. The SEC says not to use only reviews or praise when you choose to invest. A scammer may post fake reviews too. [3]
Does a good work reference mean I should invest?
No. A work reference is not advice to invest. The SEC says private deals can be high risk, hard to sell, and low on data. [1]
REF
Sources
- 1
U.S. Securities and Exchange Commission
Private Placements under Regulation D – Updated Investor Bulletin ↗ - 2
U.S. Securities and Exchange Commission, Investor.gov
Check Out Your Investment Professional ↗ - 3
U.S. Securities and Exchange Commission, Investor.gov
Beware of Fraudsters Impersonating Investment Professionals and Firms – Investor Alert ↗ - 4
UK Government
Get information about a company ↗ - 5