We understand that number cranking is just one aspect of due diligence. It’s revealing below-surface potential and risk that can make or destroy an investment. Our holistic approach ensures all aspects of an investment opportunity are scrutinized carefully, from fiscal stability to psychological profiles.We believe a comprehensive outlook is required to make sound decisions that lead to long-term achievement.
Rigorous financial analysis to assess the viability and potential of each investment.
Financial analysis is the foundation of our due diligence work. We carefully scrutinize financial statements, revenue projections, and prospects for the market. We believe being financially responsible is very important for each investment. Our analysts are all very experienced and use technical tools and methods to look at trends, gauge risk, and project future performance. The four different investment groups that we manage all require the same diligent oversight. We have a strong sense of discipline to make the best decisions we can for the future and to provide certainty to our investors’ capital.
Detailed examination of balance sheets, income statements, and cash flow statements.
Analysis of projected revenues and growth potential.
Assessment of market size, growth trends, and competitive landscape.
Identification and evaluation of financial risks and mitigation strategies.
We believe that the success of an investment is often made or lost by the people behind it. Our psychological assessments analyze the psychological and emotional traits of founders, including their confidence, adaptability, and emotional intelligence. Having the psychological profile of key stakeholders in hand, we are able to identify potential warning signs and make sure that our investments are driven by capable, responsive leaders.
In-depth interviews and assessments to gauge confidence, flexibility, and emotional intelligence.
Speaking with former colleagues, mentors, and investors to get a sense of past behavior and performance.
Presenting hypothetical scenarios to assess adaptability and contingency planning.
Observing founder interactions with their team to ensure a positive and collaborative environment.
Behavioral interviews are a core component of our due diligence process. We conduct exhaustive interviews with founders, former colleagues, and investors to gain insight into past performance and behavior. Understanding how a founder has handled adversity in the past enables us to better estimate what they will do in the future and whether they are a good fit for our investment portfolio. By using this approach, we get individuals who are not merely visionaries but possess the capability to execute their vision.
Conducting detailed interviews with founders and references.
Asking about past experiences and how challenges were handled.
Speaking with former colleagues and investors to verify information.
Identifying patterns of behavior that indicate future success or potential issues.
Scenario planning is an effective way to assess a founder’s ability to adapt and pivot in following an unexpected challenge. We present the founders with a variety of hypothetical scenarios, so we can watch how they respond. We look for flexibility and problem solving skills, and the decision making ability to be able to think through the unexpected. By practicing to prepare, we are confident that we understand an investment’s resiliency and adaptability in a volatile business world, by watching a founder pivot in a typical business function or situation.
The success of a startup largely relies on the strength of the team. We see how founders engage with their teammates to ensure they create a positive, collaborative culture. Emotionally intelligent founders with an ability to form deep relationships are likely to motivate their team and achieve success. By analyzing team dynamics, we see potential conflicts and make sure our investments are supported by united, high-performing teams.
Watching how founders interact with their team in real-time.
Collecting feedback from team members about the founder's leadership style.
Assessing how founders handle conflicts and disagreements.
Ensuring the founder's values align with the company's culture and goals.
At Evolve Venture Capital, we think that our investors should be equipped with tools and knowledge that they need in order to make informed choices. Whether you need to enhance the way you do due diligence or want to save yourself from the hidden cost of psychological debt, we are here for you. Contact us today to learn more about our comprehensive due diligence approach and how we can help your investment strategy.
