Tag / Articles
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AI Washing Dangers: Due Diligence in Venture Capital Before FTX and Delphia’s fraud scandals, venture capital culture was highly characterized by an ‘ends justify the means’ mindset. VC firms focused their due diligence efforts on evaluating startups’ business models, market potential, and financial health, scoping out founders only incidentally. Unfortunately, rapid growth and high returns bred fraudulent activities, like manipulating financial data […] -
Vetting Franchisees: A Guide for Franchises Franchisee vetting mitigates reputational risk posed by the franchising model, and assures a positive fit. Thorough franchisee due diligence also lowers risk of franchise failure. -
Database Aggregators Aren’t Enough for Due Diligence What is a Data Aggregator? Database aggregators compile large amounts of data and records into a centralized, searchable database. Some are well-suited to specific industries or use cases, like business intelligence or market research, while others are designed for due diligence. On one hand, due diligence data aggregators are highly convenient, inexpensive, and multi-use, making […] -
All You Need to Know About Politically Exposed Persons Politically exposed persons (PEPs) pose significant risk to financial institutions. These individuals are significantly more likely than the general public to engage in financial a.. -
The Shifting Nature of Background Checks in Venture Capital In recent years, the VC community has started to rethink its traditional approach to the role of background checks in the due diligence process. Historically, VC firms have taken a ‘check-the-box’ approach to background checks to vet company founders, believing that reliance on their networks and in-person interactions with founders would counter-act any downsides of […] -
The Role of Court Runners in Thorough Public Records Searches What is a Court Runner? Court runners are responsible for transporting documents to or from a court. These individuals can work for law firms or be independently contracted to deliver and pick up the documents promptly, given the time-sensitive nature of most use cases. These court runners are essential for retrieving documented information from counties […]