Venture capital due diligence offers significant value to startups, even when they do not ultimately secure investment. The process itself serves as a powerful learning opportunity, as VCs are experts in assessing businesses and can provide constructive feedback on critical aspects such as a startup’s business model, financial projections, and go-to-market strategy. This external evaluation helps founders identify weaknesses, refine their approach, and improve their overall business positioning, increasing their chances of future success. Additionally, undergoing due diligence with a reputable VC firm can serve as a quality signal to other potential investors. When a startup is vetted by a well-regarded firm, it demonstrates that the company has passed a rigorous assessment, making it more attractive to other funding sources. This credibility boost can help startups secure investment from alternative investors, build strategic partnerships, and gain industry recognition. Ultimately, the due diligence process is not just about securing funding—it’s a valuable refinement tool that can enhance a startup’s viability and future fundraising potential.,

The research is particularly robust and credible due to its comprehensive scope and methodological rigor. By analyzing over 2,000 startups that applied for venture capital funding, the study offers statistically significant insights into the impact of the VC due diligence process on startup performance. The inclusion of a two-year observation period strengthens the findings, ensuring that any improvements in fundraising success can be more confidently attributed to the due diligence process rather than external factors. This longitudinal approach provides a deeper understanding of how VC interactions influence a startup’s growth, investment prospects, and strategic development over time. Furthermore, the study's credibility is bolstered by the involvement of researchers from highly respected institutions—the University of Chicago Booth School of Business and the Kellogg School of Management at Northwestern University—both of which are known for their rigorous academic standards and expertise in finance and entrepreneurship research. The backing of such esteemed institutions ensures that the study was well-designed, data-driven, and methodologically sound, making its findings a valuable resource for entrepreneurs, investors, and policymakers looking to understand the true impact of VC due diligence on startup success.,