The other side of entrepreneurship or Why the investors want Due Diligence

In: Books, Entrepreneurship, Investment / No comment yet

20 Dec 2018
  • In a world where everybody reads, appreciates, worships the likes of Steve Jobs.
  • In a world where everybody claims “fake it until you make it”, where everybody is pushing the limits of ethics selling what they don’t have, hoping that they will be able to deliver before the hell brakes loose.
  • In a world where the Silicon Valley model is the role model for everybody, with its FOMO, ADHD, “need to make 10 millions before I am 22”.
  • In a world where all the above actually seems to work and they show us Apple, Facebook, Microsoft, Amazon… you name it.

Here comes the other side: Theranos.

I know it is old news now, but I have just read the Bad Blood book and I believe it is one of the great reads of these days, to balance the overly positive Steve Jobs example.

  • This is why you need to also deliver, not only convince people with brilliant PowerPoints.
  • This is why the worst nightmare of investors is to be lied by charismatic founders.
  • This is why you are being Due Diligenced to your desperation. Why there is no rock left un-turned in your shop before an investment.
  • This is why solid Boards are being required for the company. To advise, but to also to raise red flags when needed.

Please appreciate a good VC not only for the business help, but also for the thoroughness in pushing you to become a solid company. It will not only help the investors, but will also keep you out of jail.

I know the concept of Noble Cause Corruption, where you believe you lie “a little” while the bigger goal is more important. But NO. Never ever do this.

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