Technical & Financial Due Diligence
In our experience, many people often follow one of the following modes when looking at early-round investing in developing companies:
◉ Enthusiasm overcomes logic.
◉ Relying on peers’ due diligence, where nobody ends up doing it.
◉ FOMO – simply the fear of missing out.
◉ False comfort in companies working with AI (Artificial Intelligence).*
◉ To even overdoing the due diligence and becoming too risk adverse.
While always looking at all the standard items for due diligence, we take a deeper and different approach from both a technical ( *for example in the case of AI, we truly know and use AI for delivered projects for a major university) and financial perspective (e.g. we deep dive not only into the financials and agreements, but also the footnotes, nuanced notations, as well as the principle players), making what is still ultimately a leap of faith, one at least most grounded in the truly relevant facts.