Tue, 19 July 2022
Startup Boards -- Diligence Process - Team
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Before investing in a startup, it’s important to review the diligence documents, so you understand the business.
There are three phases to diligence:
Team diligence is the most critical part.
Gather references for the CEO and call them up to hear what they have to say about the founder, including management style, how they work, and their team dynamics.
In most cases, you’ve heard the CEO pitch, but it’s important to understand the CEO’s skills set, including what is there and what is not.
Meet with the team and assess their skills.
It helps to meet the team at their office, so you understand their environment.
The team needs to bring the necessary skills to succeed.
Key questions to ask include:
In almost every startup failure, the investor can trace it back to the team not being up to the task.
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