Pre-Investment Intelligence: The Founder Tells You About the Company. We Check What the Company Tells About Him
An investor deck is a marketing document. It was built so you invest, not so you know. In most private investments, at amounts where no large fund's due diligence machine exists, the gap between the deck and reality gets checked one way only: someone goes and checks.
This briefing is written for private investors, angels, family offices and small funds, at stages where the decision rests mainly on trust in people. We detailed the general methodology of intelligence due diligence in a separate briefing; here the focus is what is specific to an investment deal.
The first check is the people. A founder arrives with a story: exits, roles, successes. Every component of that story can be verified, and such a check regularly finds that the exit was a modest deal retold, that the senior role was external consulting, and that between one successful venture hide three that collapsed and left debts and angry investors. Previous investors and former employees are the most valuable source of all, and no deck ever points you to them.
The second check is the business claims. "Signed contracts", "a pilot with a major player", "an MOU with a strategic partner": each of these claims gets verified, discreetly and from open sources, before it becomes the basis of a decision. One material gap between deck and reality is usually not an accident, it is a method, and it is worth knowing before the wire transfer, not after.
The third check is the environment: who else sits on the cap table and what their background is, which obligations and liens rest on the company, and which legal proceedings accompany it or its founders. Here too, most of the picture is lawfully available to whoever knows how to read it.
The product is a focused report delivered before closing: findings, sources, and gaps against the presentation you were shown. Sometimes it confirms everything, and the investment closes with full confidence. And sometimes it is the best deal you ever made, precisely because it did not close.
Frequently Asked Questions
How is this different from legal or accounting due diligence?
Lawyers and accountants examine the deal documents and the statements. We examine the people and the claims behind the documents: history, reputation, and verification against reality. The checks complement each other.
How long before closing should I reach out?
A focused check closes within days, but it is better to reach out the moment the deal turns serious. A finding that arrives a day before signing is less useful than the same finding a week earlier.
Will the founder know he is being checked?
No. The work relies on open sources and discreet inquiry, with no contact with the founder and no mark left. If everything is clean, the deal continues with nothing damaged.
What do you check in an investor deck?
The verifiable claims: customers and contracts, partnerships, the team's past achievements, and background data on the company. A good deck survives such a check easily. A different kind of deck, less so.
If an investment is on the table, the cost of the check is a rounding error in the deal. One conversation before closing puts the deck against reality.
More on this service: Business Intelligence
Further reading: BRIEFING 07 - Financial Due Diligence · BRIEFING 09 - Competitive Intelligence