Due Diligence Goals
Before you (1) define due diligence leads and (2) define members of the team, learn as much about the company as you can. Watch their pitches and do your online research to see if what they say and what is in their pitch aligns. If possible, ask if you can speak with past investors, employees, suppliers, or members of their advisory board. This is not always an option but wherever you can get more insider information the better.
Due diligence serves the overall purpose of:
1. Discovering the edges of the company
What does the founders’ thinking look like when validating their business model and how do they react to deep-dive questions that challenge their assumptions?
2. Validating what they said
3. Deciding as a group if they are investable