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Pre-Investment Diligence on Founders
Financial diligence examines the company. Founder diligence examines the person the capital is actually backing.
7 min read · Alpha Intel Advisory
What Investors Miss
Data rooms describe the business as it is presented. They rarely disclose a prior venture that closed with unpaid obligations, a co-founder dispute settled quietly, or a parallel entity holding the intellectual property.
The Founder Set
A proportionate pre-investment review addresses the following.
- Full incorporation and closure history, including dormant entities
- Shareholding and directorships outside the target company
- Disputes with prior investors, co-founders or employees
- Unpaid statutory dues, judgments or personal guarantees
- Credential and career timeline confirmation
- Reputation among informed peers and prior backers
Timing
Conducted before the term sheet, findings shape terms. Conducted after, they only justify regret.
This article is general guidance on method and standard. Alpha Intel does not publish client matters or identifying information without explicit written authorisation.