Venture Capital Due Diligence

Venture Capital Due Diligence

by Justin Camp – Book review

Published by Wiley Finance (www.wileyfinance.com) 

Although a laborious process, due diligence is essential in the assessment of new investment opportunities. In his book ‘Venture Capital Due Diligence’, Justin Camp draws up 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 there, also provides checklists and tips for due diligence.

All venture capitalists and other types of investors in business should read ‘Venture Capital Due Diligence’. The book is a definitive guide and leaves no scope for doubt regarding the due diligence process. In his book, Camp explains how intelligent investments can be made, how strategic plans should be formed and decisions made, and how returns on investments can be increased to improve a 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 the reasons why a company’s intangibles should be assessed, and its character, 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. ‘Venture Capital Due Diligence’ uses the practices and opinions of these key VC community members as a basis for answers, thus providing guidance during the due diligence process. The book also deals with important issues concerned with the due diligence process:

The source or reference of a VC deal 
The quality of the business plan of the company looking for investment
Details about the present investors of a company, and about potential additional investors

The venture’s accounting firm 
Camp addresses due diligence issues in his book in a manner that allows his readers to clearly comprehend the process of due diligence. 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.

Courtsey of Angel investor News