Environmental Science

Welcome to Hot Due Diligence Summer

Welcome to Hot Due Diligence Summer

The recent board fight for a digital health unicorn is reminding entrepreneurs that it’s important to set boundaries even between the frenzy and speed of this summer’s deal. After these board members invested in a competitive startup, I published a scoop on how Besama Venture Partners replaced a board member at Hing Health. Daniel Perez, co-founder of Hinz Health, complained that board members did not inform him before they started leading any rounds in the early stages of the same sector.

The situation gives a rare and arrogant peek into the competitive tensions in the startups world. Founders expect certain values ​​of behavior from investors, where they inform them about investing directly at the beginning of the competition; investors may feel more pressure to make quick decisions to clash with their already supported founders, when they have different definitions of competition, their portfolio.

In a post-NDA world, the rules on how to conduct these conversations need to be rewritten. I’m not sure if there’s a solution to everyone’s plight – but I think transparency between the founders and the investors can’t be harmed. It’s not just for the founders. Investors, who return to their LP, do not want to be in a situation where they cannot invest in a bright sector because they have another investment in this sector. The situation is endless:

  • Is it okay to make competitive investments in the same company as long as different partners sit on the board?
  • Can a Sequoia India support a company that is in direct competition with a Sequoia India company?
  • What if a portfolio company’s future roadmap includes a go-to strategy that conflicts with a potential investment?
  • What happens in a different market than when a startup sells its investors and suddenly becomes competitive with a portfolio company?

Based on my DM, Hinz Health is not alone in dealing with competitors who support current investors. It adds a star to the barrage of the fund round. Welcome to the hardworking summer because of the heat, my idea? For the rest of this newsletter, we’ll go over Dulingo S-1, an exclusive interview with Creator Economy Rebrand and top startup marketers. As always, you can find me on Twitter at @Nmasc_ – send me tips or notes about any competitive excitement you’ve dealt with.