One of the most mystifying parts of venture fundraising is the murky process of due diligence. There is a ton of advice out there on how to get in and pitch a venture investor, but little on how to manage the ‘boring-sounding’ but critical due diligence process. Yet this is where make or break happens for many venture deals. Due diligence is the homework that investors do – tech reviews, reference calls, market checks – to understand the opportunities and risks of an investment. For some investors, diligence is a structured process. For others, it’s an informal dating ritual. Either way, it’s important for entrepreneurs to understand the process and manage it.
Both Number of Funds and Capital Raised Continues Upward Trajectory
Capital Continues to be Highly Concentrated with a Small Number of Funds
Number of New Funds Also Increases, but Only Accounts for 8% of Total Capital Raised