Breaking Down a Typical VC/Startup Diligence Process by @ttunguz

When I’m meeting a startup for the first time, my goal is to understand as much about the business and team as I can. After a startup has left and I’m “doing diligence,” I want to test some of the assertions made by the company. Follow up meetings are dedicated to metrics and the future. At this point, I’m really interested and I’m trying to understand the investment risks better. After the term sheet is signed, the lawyers step in. Each fund raising process is unique. Sometimes investors will have deep experience in a sector or know the team very well both of which can accelerate the process significantly. But I hope this general outline sheds light on the key steps and questions answered in the fund raising process. ​ ​

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• Gaurisha Dewan