Red Flags and Warning Signs: What Could Trip Up a Startup during VC Due Diligence (Medium article written by Lauren Epstein)
To secure VC funding, a company must be special — not only having significant positives, but also avoiding serious negatives.
These negatives are often uncovered during due diligence, an exploratory process that VC’s conduct with a company of interest prior to issuing a term sheet.
In general, due diligence is intended to serve two purposes:
1. Assist in building an investment thesis to inform a proposed investment in the company; and
2. Uncover any potential problems.
T...
