Had a breakfast recently with someone repping one of those Web 2.0 companies you always hear about (I know that narrows it down a lot). I asked him/her what sort of diligence he/she did when considering work for a company with such a frightening (economically, at least) label. He/she said that he/she made sure to speak directly to the CEO and the VCs to find out the business plan and why they invested, respectively. Some potential clients might be taken aback, but, I would argue, if they feel uncomfortable discussing it, then it's probably not the right client.
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