Providing technical due diligence on emerging startups
THE PROBLEM Venture capital firms face mounting pressure to evaluate startups at increasingly earlier stages of development. At this point, most ventures lack audited financials, operating history, or proven product-market fit. Traditional due diligence models, rooted in historic financial performance, fall short — leaving investors exposed. Key challenges include: - Limited evidence – little to no revenue patterns or reliable financial statements - Uncertain validation – untested customer adoption and speculative demand forecasts - High noise-to-signal ratio – founder narratives and projections often lack objective benchmarks - Difficult comparability – no standardized criteria across industries and business models This environment makes it harder to distinguish truly investable startups from those that may never scale, creating heightened risk for capital allocation.
THE SOLUTION Reisiger has developed a specialized due diligence methodology designed for early-stage and emerging startups where traditional models break down. Instead of relying on retrospective financials, Reisiger’s frameworks — including the Critical Solution Framework, Business Maturity Benchmark, and Reverse-Engineered Point of Success — evaluate the core investability of a venture through strategic, operational, and leadership indicators. This approach uncovers whether founding teams, business models, and technologies are structured for sustainable growth and predictable returns, even in the absence of long-term track records.
KEY FEATURES & BENEFITS - Objective benchmarking – reduces reliance on speculation and founder-driven narratives - Early identification of investable ventures – enables more confident decision-making - Cross-cutting performance tracking – evaluates ventures against holistic, standardized criteria - Predictive insights – assess leadership, business model fit, and cashflow potential - Beyond traditional metrics – introduces unique quality indicators and quantifications often missed by legacy due diligence Impact: VC firms can allocate capital more effectively, reduce exposure to bias and over-optimism, and identify high-potential ventures earlier — creating a more reliable pathway to long-term returns.
