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

tomtunguz.com · 718 words · saved by 1 readers

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. ​ ​

In short : Explore the step-by-step venture capital due diligence process for startups seeking investment insights. Below is my general outline for a typical diligence process. First meeting 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. Founders/Team: How do the founders know each other? How do they interact with each other? Are they passionate? How qualified are they? What would it be like to work with them? Business: In some form, I walk through the Business Model Generation framework: value proposition, key…

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