One of the many perks of living in a startup nation is that everyone here has a startup. Usually, when someone hears what I do, a common response is “I have an idea for a startup that you just have to hear” or “my brother is the founder of this startup, and you must meet with him.”
There are no cookie cutter due diligence processes. Every company is in a different stage, with different historical and forecast financials. Every client has different requirements and expectations. That’s why flexibility is one of the most important attributes you should search for in a due diligence provider.
As a tech financial consultant, I talk to many startup founders and tech investors every week, and every time I’m amazed all over again to see the differences in the line of thinking and understanding in private market investing between founders and investors.
It happens every quarter. A promising, high-profile tech company reports better than expected results that beat analysts’ consensus on the top and bottom lines, but the stock price plunges as if the company has disappointed greatly.
