While speeding up due diligence is often necessary in competitive scenarios, cutting corners is risky and can lead to oversight of critical issues. Instead, focus on streamlining the process without compromising thoroughness. Prioritize key areas like financials, legal compliance, market validation, and intellectual property, leveraging technology and expert teams to accelerate analysis. Conduct a preliminary high-level review to flag potential red flags early and decide if deeper investigation is warranted. Use checklists and standardized processes to ensure nothing important is overlooked. Staying thorough, even under time pressure, safeguards your firm’s reputation and ensures sound investment decisions.

It's ok to feel you are in a rush sometimes. This is just a symptom that something needs adjustments in your methods. If your method feels slow, don't blame the outcome. So, instead of flooring the gas, improve your process, or otherwise you will fail miserably because, in the most likely scenario, the due diligence will crash sooner or later.

It all depends on the dynamics of the situation. If a reputed VC is leading the round and you get allocation as a co-investor, you can complete due diligence in very little time. Also, if a startup has raised external capital before, chances are someone else has vetted the company and a lot of the "raw" DD - incorporation, patents, team pedigree etc might have been already taken care of - leaving traction, projections, partnerships etc as factors requiring attention in a significantly reduced DD scope. Rest is plain deal mechanics - use your instincts and market signals to gauge the "hotness" of the deal and more importantly, gauge the quality of your portfolio fit to determine the pace at which to progress with the DD.

As the Head of Fund Accounting, I view due diligence as vital for responsible decision-making, especially under pressure. While speed is essential in today’s competitive landscape, cutting corners risks long-term losses. To balance speed and thoroughness, we use streamlined processes with standardized checklists, leverage AI and analytics for faster, accurate reviews, and prioritize critical areas like financials, market potential, and leadership integrity. Collaboration with legal, risk, and compliance teams ensures comprehensive evaluations. Our focus remains on safeguarding investor trust and driving sustainable growth.

While the pressure to accelerate due diligence on a promising startup is understandable, cutting corners can lead to significant risks. Thorough due diligence is crucial to uncover potential red flags, validate financials, assess market position, and ensure regulatory compliance. Rushing this process could result in overlooking critical issues, leading to poor investment decisions and potential losses. Instead, consider streamlining processes by leveraging technology, allocating additional resources, or prioritizing key areas of concern. Balancing speed with diligence ensures informed decision-making, safeguarding both reputation and investment outcomes.

While the pressure to speed up due diligence on a hot startup is intense, I prioritize thoroughness by focusing on the fundamentals. I also don't like chasing after hot deals as they are often overpriced.

While the excitement around a hot startup can create urgency, it's essential to maintain thorough due diligence. Cutting corners might expedite the process, but it risks overlooking critical issues that could impact the investment's long-term success. Thorough due diligence ensures a comprehensive understanding of the startup's financials, operations, market position, and potential risks. This approach safeguards our firm's reputation and investment. Balancing speed with diligence is key—prioritizing core areas while staying efficient ensures informed decision-making without compromising the quality of our evaluation.

You should have an efficient but thorough process to begin with. Beyond that, it takes the amount of time it takes. Anything less is a disservice to investors and goes against your fiduciary duty as a GP. Be thorough but be efficient from day 1.