Equity Would you marry your investors?
Jan 12, 2022
The discussion dives into the rapidly evolving landscape of startup investments. Topics include the diminishing focus on due diligence and the power of FOMO in fundraising. Founders are now demanding transparency and deeper engagement from their investors. Backchanneling emerges as a critical factor, revealing how founders share insights about VCs. The chat also touches on changes in early-stage diligence practices, highlighting the contrast in approaches between different fund sizes. Overall, it’s a lively exploration of modern investor-founder dynamics.
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Changing Due Diligence
- Due diligence in venture capital has changed.
- It used to be slow and methodical, but now deals are made more rapidly.
The Power Shift
- Increased capital and competition have flipped the script.
- Founders now interview investors, not the other way around.
Broaden Your Search
- Investors should look beyond their networks.
- Seek out founders with proven track records and positive reputations, even if they lack name recognition.