How to Conduct Founder Due Diligence as an Investor

Founder due diligence is the process of evaluating whether the people building a startup can actually pull it off. Most early-stage investments fail because of the team, not the market. Here's how to diligence founders.

Step 1: Background research. Read the founder's LinkedIn, previous companies, and any public writing (blog, Twitter, talks). Look for patterns of achievement and domain expertise.

Step 2: Reference calls. Ask for 3-5 references — former colleagues, managers, and reports. Ask: 'Would you work with them again?' and 'What are their blind spots?'

Step 3: Technical assessment. For technical founders, review their GitHub contributions. GitDealFlow's signal page shows commit velocity, code quality, and contributor growth. Strong engineering founders ship code consistently.

Step 4: Market understanding. In conversations, test whether the founder deeply understands the problem. Ask about competitors, customer acquisition, and the hardest part of what they're building.

Step 5: Ambition and resilience. Venture-scale founders have unusual ambition and resilience. Look for founders who've overcome significant challenges and are committed for 10+ years.

FAQ

How many reference calls should I do?

3-5 for a pre-seed deal, 5-10 for a seed or Series A. Include at least one reference the founder didn't suggest — this catches patterns the founder's network won't surface.

What's a red flag in founder references?

Vagueness ('they were fine'), hesitations, or references who won't return your call. Strong references are specific about achievements and honest about weaknesses.

How do I assess technical founders?

Review their GitHub (commit velocity, code quality, open-source contributions). GitDealFlow aggregates this data across a startup's repos. Non-technical investors should bring a technical advisor for deep dives.

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