The high-profile implosions of Theranos, FTX and others serve as stark reminders of the need for extensive, dispassionate due diligence by investors—both before committing funds and after the investment has been made. This is particularly true of founder-led entrepreneurial ventures. Unfortunately, in the overheated market of the last few years, even some sophisticated investors let their due diligence standards slip in the rush to get deals done. As the Financial Times recently lamented, “doesn’t anyone do due diligence anymore?”
Since 1994, Mintz Group has been helping investors from high-net-worth individuals to institutional investors and private equity and venture capital firms—conduct reliable, timely due diligence on companies, management teams and founders around the world. Below, Jill Haberkern, Kelsey Froehlich and Jack Mullan set forth seven best practices for investors to make their due diligence processes as effective and efficient as possible.
