Most VCs generally break this down to 1) market; 2) technology; 3) financial; and 4) ‘operations’…..The entire due diligence exercise serves, at a minimum, to identify and mitigate the risks associated with the deal to the extent necessary honor the VC’s fiduciary duties to its LPs.
Here’s a laundry list of questions entrepreneurs should be asking themselves and/or the VC to determine whether the fund in question is a good fit.:
* What stage fund is it? Do they invest in your stage of company?
* Where is the fund in its life cycle?
* What is the time horizon for this investment?
* What kind of return does the VC need to make on this investment?
* What happens if t