If you ask ten funded entrepreneurs what happened during the VC/private equity due diligence process, you will get ten different answers. Some will say they lost valuable months answering endless questions for groups that never produced a term sheet. Others may admit they gained valuable insights into their business.
I am uncertain when the due diligence process gathered so much mystique, but among entrepreneurs, there is still an urban “myth status” about what happens behind closed doors.
We believe it shouldn’t be a mystery. Understanding due diligence improves the information flow between private equity groups and potential entrepreneurs. Better information leads to better investment decisions and better long-term partnerships.
For More: Due Diligence Is No Mystery