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Venture Capital Due Diligence

By Justin Camp
Published by Wiley Finance (www.wileyfinance.com)

 

Although a painstaking process, due diligence is critical to assessing new investment opportunities. In his book “Venture Capital Due Diligence”, Justin Camp draws a detailed framework of venture capital due diligence, including tools and techniques used while assessing companies for venture investments. Camp, who is the founder of Camp Venture (www.campventures.com) and a general partner in the same, also provides checklist and tips for due diligence.

 

‘Due Diligence’ is mandatory study for Venture Capitalists and generally all types of business investors. The book is a definitive guide and leaves no scope for doubt regarding the due diligence process. In his book, Camp tutors on how smart investments can be made, how strategic plans should be formed and decisions made, and how returns on investments can be increased to improve VC portfolio.  Camp’s book is an instructive manual on the process of performing due diligence of a company’s management, its legal issues, business model and services. Camp also discusses why a company’s intangibles should be assessed, and its character and focus and momentum understood.

 

Camp’s book talks about several major venture capitalists, including Don Valentine of Sequoia Capital, Doerr of Kleiner Perkins Caufield & Byers, and Kevin Fong of the Mayfield Fund. VC Due Diligence explores the practices and opinions of these key VC community members to present answers and provide guidance during the due diligence process. The book also centers on answering critical questions regarding the due diligence process:

 

  • The source of a VC deal and knowledge of the referential person
  • The quality of business plan of the company acquiring investment
  • Details about the existing investors of a company, and about its potential co-investors
  • The existing accounting firm of a company, etc

Camp addresses due diligence issues in his book in a manner that allows his readers to assume VC positions and conduct due diligence on companies. Simply explained, Camp’s readers will gain a thorough understanding of the due diligence process and practical knowledge of how it works.

 

Camp’s framework is geared towards helping VCs make good decisions. Venture Capital Due Diligence is a guide to uncovering unforeseen problems in due diligence. His system is the basis of his book, as it is a part of two Wharton graduate-level MBA courses.