This excellent article on what they look for during their audit, or due diligence (DD), phase covers the critical success factors in startups, including:
– Technical items;
– Human resources-related matters;
We also loved the drawings they included there, including the one copied below.
It’s a stark reminder to founders that due diligence is a two-way process: they should also reference-check VCs.
What did you think of their “open source” DD list? What other items do you believe are important for VCs to check? How much time do you believe founders spend in audits during deal processes? Let us know in the comment section below.