6 Things Founders Should Expect During Venture Due Diligence

6 Things Founders Should Expect During Venture Due Diligence

Venture due diligence can be a murky process for founders, often leaving them unsure of what to expect. While the specifics can vary between firms, typically the lead investor takes charge of the diligence process and issues the term sheet. Other investors often rely on the lead investor's findings.

Comparing it to a house buying checklist, venture due diligence is non-standard and open-ended, with items added as they're discovered. It's a process that ends when investors and lawyers are satisfied with the information presented.

In early-stage companies, much of the due diligence occurs before the term sheet is issued, while in later-stage financing, it may happen afterward due to the complexity of legal, financial, and business matters. Here's what founders can anticipate during the early-stage due diligence process. [Read more](https://www.startuphacks.vc/blog/2019/08/27/6-things-founders-should-expect-during-venture-due-diligence) (Shared by 2048 Ventures)