Due diligence is a twoway street in VC deals from "summary" of Mastering the VC Game by Jeffrey Bussgang
Due diligence is a critical aspect of venture capital deals. It involves the investigation and analysis of a potential investment opportunity to ensure its viability and potential for a return. While the term "due diligence" is often associated with the investor conducting the investigation, it is important to recognize that this process is a two-way street in venture capital deals. In the traditional sense, due diligence has primarily been seen as the investor's responsibility to thoroughly assess the startup before making an investment decision. This involves scrutinizing the company's financials, market opportunity, technology, team, and other key aspects to mitigate risks and make an informed investment choice. However, in today's more collaborative and transparent venture capital landscape, due diligence is increasingly becoming a shared responsibility between the investor and the entrepreneur. Entrepreneurs are also exp...
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