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Last time we gave you some advice from the peak, we talked about how to get out there and meet people. For entrepreneurs, it’s important to know that you’re meeting the right people to help your business.

If you want to start growing, what’s one thing you’re always going to need? That’s right — money. When an investor comes your way and starts throwing cash around, it’s not so easy to turn down.  This is where a lot of startup founders make their first big mistake: taking the wrong money from the wrong people.

Investors do their due diligence when choosing what companies to invest in — it’s up to you to do the same to them. Here’s what to look for in investors and why:

1. Mo’ money mo’ problems

If your idea is that good, getting your hands on money won’t be all that hard, but you need to be careful with what you take. As Biggie once said, “Mo’ money, mo’ problems.” The more you take, chances are, the more control you’re going to give up. Ask what else they can offer you.

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Do they have the intangibles that will take your company to the next level? I’m talking connections, knowledge and experience. You also want to pick someone that you’ll be able to sit down and have a beer with, and who you can trust. This relationship can be more like a marriage than you might expect, so make sure it works.

2. They talk the talk, but do they walk the walk?

Does this investor have a proven track record? If not, then what exactly is giving you the confidence to go with them? The more specific to your industry, the better. These investors are great to have around because they can offer the experience you need to help avoid missteps.

Early startup entrepreneurs are typically very intelligent and ambitious but often don’t know as much as they need to know. Having an investor around who “walks the walk” will help you ask, and find answers to, the tough questions.

3. Who do you know here, bro?

A good network is everything. Meeting the right people can be so much harder than finding the right money (see some of our tips on how to meet the right people here). It can seem almost impossible to meet the right people to move your business forward without personal introductions, so the ones your investor can offer you should be extremely valuable.

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4. Ethics and science investors need to shake hands.

What kind of person is your investor? Do they exhibit an ethical alignment with your company’s mission? Big deals are exciting but you need to examine the person that you’re going to be working with.

What are others telling you about them? What is your gut telling you? You don’t only want, but you need someone who is fully behind whatever it is you’re trying to accomplish. I, personally, would like to know that my investor has integrity and conviction toward what they are doing as well as the high praise of their peers and other investees. Ask around.

5. Hands off, mister.

Multi-million dollar Series A round is cool, but do you know what’s cooler? Not having to give up a ton of control of the company you built. Premature funding can leave you and your team unsatisfied.

Instead, look for funding only when you’re ready to scale the company and have already proven that your product (or service) works and makes money. If you’re really confident in what you do, you should be happy with an investor that will give you less and leave you and your team alone to do what you do best.

The funding is just there to help the process.

By Joseph Afton