Prior to making an investment in a company, every venture capitalist (VC) completes a due diligence list––a catalog of the key business assumptions they need to validate prior to closing an investment. These lists vary depending on the stage of the deal and can range from your articles of incorporation to detailed customer calls.
This is a good thing. People should know what they’re getting into. Unfortunately, many entrepreneurs forget that diligence is a two-way street. Or, just as dangerous, they overemphasize a few key items. Things like the hotness of a firm, the valuation given to your company, or even the option of board members on fit become big factors driving their choice. While these are clearly important, they are not the only factors that matter.
To read the original article: The Entrepreneur’s Guide to Selecting a Venture Partner (And Avoiding Killing Your Business)
