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Why Startups Must 'NOT' Dread The Idea Of Due Diligence By Investors

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Powered By Inc42 BrandLabs

Most entrepreneurs dread the idea of subjecting themselves to due diligence by investors. They pride themselves on their autonomy and domain expertise and don’t find the concept of someone digging into what they’re doing very appealing.

Some feel threatened when an outsider who has very little operational skills or real-life experience dares to ask them questions, and challenge what they’ve done so far – and dispute their projections. And they resent having to be answerable to investors just because they have deep pockets.

However, in the startup ecosystem, as in other parts of life, the Golden Rule applies – the person who has the gold makes the rules!

Entrepreneurs need to reframe their perspective and understand that the due diligence process can actually add a lot of value to them. Yes, it’s true that you’re likely to feel uncomfortable because you’re forced to expose all your weaknesses, but you can learn a lot from an........

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