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The number and types of bills we got after closing an A-round was ... illuminating. Background checks on founders, in particular, was not something I would have
by mrkurt 14y ago
The number and types of bills we got after closing an A-round was ... illuminating. Background checks on founders, in particular, was not something I would have guessed we'd be billed for.
- jacquesm 14y agoBut did you expect them to do such background checks in the first place?
- mrkurt 14y agoYes, those weren't a surprise.
- jacquesm 14y agoGood. Incidentally, the number of things popping up during such background checks that scuttle a possible deal is quite substantial. It's not so much that there is stuff that was eye-brow raising, it is mostly a breach of trust in terms of disclosure. Sometimes founders are not honest with each other from the get-go, it wouldn't hurt for founders that feel they are in a position to hit one out of the park to have a 'full disclosure' session with each other so they know at least what if any skeletons there are in the various cupboards rather than to have a surprise late stage rejection. Those are generally bad for business.