Are you relying on your co-investors to do the due diligence?

“𝗪𝗲 𝗿𝗲𝗹𝗶𝗲𝗱 𝗼𝗻 𝗼𝘂𝗿 𝗰𝗼-𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝘁𝗼 𝗱𝗼 𝘁𝗵𝗲 𝘁𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹 𝗱𝘂𝗲 𝗱𝗶𝗹𝗶𝗴𝗲𝗻𝗰𝗲.”
It’s something I hear far too often in intro calls. And almost always, it´s followed by a regretful pause.

Several VC firms have told me they’re now working to 𝗯𝘂𝗶𝗹𝗱 𝘁𝗵𝗲𝗶𝗿 𝗼𝘄𝗻 𝗲𝘅𝗽𝗲𝗿𝘁 𝗻𝗲𝘁𝘄𝗼𝗿𝗸𝘀 after having poor experiences relying on others to assess the scientific and technical validity of a startup. And honestly, I understand them.

Not every co-investor is objective.

Even in early-stage biotech or deep tech deals, where understanding the underlying technology is critical, there’s often a tendency to lean on the lead investor’s due diligence.

But co-investors may have their own 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗴𝗼𝗮𝗹𝘀, 𝗶𝗻𝘁𝗲𝗿𝗻𝗮𝗹 𝗽𝗿𝗲𝘀𝘀𝘂𝗿𝗲𝘀, 𝗼𝗿 𝗶𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲𝘀 𝘁𝗼 𝗯𝗿𝗶𝗻𝗴 𝗼𝘁𝗵𝗲𝗿𝘀 𝗼𝗻 𝗯𝗼𝗮𝗿𝗱, even when the fundamentals aren’t fully sound.

And sometimes it’s not about intent, it’s simply that no one took a closer look.

As a result, money flows into startups with 𝘁𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹 𝗯𝗹𝗶𝗻𝗱 𝘀𝗽𝗼𝘁𝘀, 𝗶𝗻𝗳𝗹𝗮𝘁𝗲𝗱 𝗰𝗹𝗮𝗶𝗺𝘀, 𝗼𝗿 𝘄𝗲𝗮𝗸 𝗳𝗼𝘂𝗻𝗱𝗮𝘁𝗶𝗼𝗻𝘀. And when those issues surface, what’s lost isn’t just capital, it’s time, trust, and opportunity.

That’s why 𝗶𝗻𝗱𝗲𝗽𝗲𝗻𝗱𝗲𝗻𝘁 𝘁𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹 𝗱𝘂𝗲 𝗱𝗶𝗹𝗶𝗴𝗲𝗻𝗰𝗲 is so important. An external expert with no stake in the deal brings clarity, objectivity, and the ability to ask the right questions (before it’s too late).

If you’re building your own technical network or need someone who can provide clear, science-driven assessments in biotech, I’m here to support you.