Strategy & Portfolio
Due Diligence Checklist
A comprehensive list of items a VC reviews before making an investment, covering financials, legal, technology, market, and team aspects.
A due diligence checklist is a structured framework that guides a VC firm's investigation of a potential investment opportunity. It typically covers financial statements and projections, legal and corporate documents, intellectual property portfolio, technology architecture, market analysis, competitive landscape, customer references, team backgrounds, and regulatory compliance. The depth of diligence scales with the investment size and stage.
In Practice
The firm's 150-item due diligence checklist for growth-stage investments covered everything from audited financials and customer cohort data to background checks on all C-suite executives and a third-party security audit of the technology infrastructure.
Why It Matters
Thorough due diligence separates disciplined investors from those who get caught by preventable surprises. For emerging managers, having a robust due diligence process builds LP confidence and prevents costly mistakes.
VC Beast Take
The pendulum on due diligence swings with market conditions. In hot markets, VCs cut corners to move fast; in cold markets, they add 50 items to the checklist. The best firms maintain a consistent standard regardless of market conditions, adjusting speed but not depth.
Related Concepts
Further Reading
How to Evaluate a Startup as an Angel Investor
A practical framework for assessing pre-seed and seed startups — covering team, market, traction, business model, and terms. Plus the red flags that experienced angels never ignore.
The VC Due Diligence Process: What to Expect
A founder's complete guide to the venture capital due diligence process — what investors examine, how long it takes, common red flags, and how to prepare your startup for scrutiny.
Related Guides
The Complete Fund Operations Checklist: From Formation to First Close
A step-by-step operational checklist covering every decision, filing, and system an emerging fund manager needs — from entity formation through first LP close.
How to Build a SAFE Cap Table That Doesn't Haunt You at Series A
SAFEs are simple to issue and complex to manage. Here's a practical walkthrough of how to structure early rounds so you don't spend Series A cleaning up messes.
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