New ventures often require outside capital as fuel for growth. This is why, long before they create their next new venture, experienced founders and co-founders begin framing a potential venture in terms that make sense to investors. Entrepreneurs and investors play a kind of game (a serious game) in which new ventures are evaluated in terms of opportunity and risk.
The standard startup pitch deck reflects this. Each slide in the deck — problem, solution, market, business and revenue model, team, unfair advantage, competition, go-to-market plan — reflects the dialogue between entrepreneurs and investors as the opportunity and risks of this new venture are given careful consideration. But in the course of this game or process, entrepreneurs and investors take very different approaches. One aspect of their respective approaches stands out as notably divergent: due diligence.