With a staggering 90% failure rate among startups, implementing effective due diligence practices can significantly increase the chances of investment success. Here are some startup success strategies.
However, many first-time angel investors are often unfamiliar with what a comprehensive due diligence effort entails.
In the latest episode of Tech Careers and Money Talk, Claire England sheds light on the significance of conducting thorough due diligence in startup investments.
Here are the key takeaways from her insights on the role of due diligence in startup investments:
✅ Reducing failure rates:
Quality due diligence efforts have the potential to decrease the failure rate of startups from 90% to 50%, according to existing research.
✅ The value of professional diligence:
Investors, particularly those new to the asset class, often lack the knowledge of what constitutes a good due diligence effort.
✅ Comprehensive investigation:
Effective due diligence involves a thorough assessment of various factors such as market conditions, competitive landscape, financial projections, team capabilities, and potential risks.
✅ Mitigating risks:
Diligence efforts help identify potential pitfalls, allowing investors to make informed decisions and minimize the risks associated with startup investments.
✅ Empowering investors:
Understanding the components of a good due diligence effort equips angel investors with the necessary tools to navigate the startup ecosystem confidently.
To delve deeper into the significance of due diligence in startup investments, listen to this episode on Tech Careers and Money Talk.
https://www.techcareersandmoneytalk.com/building-an-investing-thesis
Gain valuable insights and share this episode with your network to empower more investors with the knowledge needed to make informed investment decisions.
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