What’s Involved in Performing Diligence?

We explore the due diligence process: how it’s performed, the benefits, and what venture firms look for when choosing an investment.

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1 min

Venture firms invested over $150 billion across 10,558 deals in 2020. With so many private companies raising capital, how do VCs sift out red flags and potential winners?

Due diligence is a critical part of venture investing, as it helps VCs decipher the quality and potential of different opportunities. VC firms of all sizes perform due diligence on a company before adding it to their portfolio. In this Venture 101 piece, we will explore the due diligence process: how it is performed, the benefits, and what VCs look for in choosing an investment, followed by a quick summary of Alumni Ventures’ own diligence process.

What's Involved in Performing Diligence
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Our Total Access Fund (TAF) is our most diversified fund and is available to accredited investors seeking to add venture to their investment portfolio. The fund is diversified by stage, sector, geography, and lead investor and is available in quarterly or annual vintages. (~20% of capital is held for follow-on investments.)

  • Single Quarter Vintage: ~50-75 investments deployed over 3 months, $25K minimum.
  • Annual Vintage: ~200-300 investments deployed over 12 months, $100K minimum.

To learn more, click below to review fund materials or book a call with a Senior Partner.

Contact [email protected] for additional information. To see additional risk factors and investment considerations, visit av-funds.com/disclosures.