What's the use of checking the background information of the management behind a project? would it really help? what if they are just new in such industry so there'll be no informations to help?
It does help and in fact it helps a lot. Think about a hypothetical coin that is being promoted on the media by advertising how potential and advanced the project is and the management is but what if the thing is otherwise ? If you do not race things to the roots, you will of course loose money and even if you do not loose all your money, you might loose a part of it. But, normally people fear to be part of impotent projects.