Enhanced due diligence practices continue at Revolution Ventures
In an article that appeared in Triangle Inno (subscription required) but originated from a panel discussion at American Underground in Durham, NC, one of the Co-Founders of Revolution Ventures talked about how COVID-19 changed some of the ways the firm coducts its due diligence.
Tige Savage’s comments came during a fireside panel discussion hosted by Bull City Venture Partners’ Jason Caplain. Like other venture firms, Revolution was making investments in companies without meeting founders in person. That meant more due diligence, specifically its reference checks. It went from a typical references list to “find everybody you know who knows somebody who knows somebody who knows something,” Tige said. Now, even though the firm is meeting founders in-person again, the extra focus on a company’s references stuck post-pandemic.
Another item we took particular note of was the fact that Revolution Ventures expects those seeking its funding to “get a real accounting firm,” as it insists on brand names that do “real audits” and usually includes these types of requirements in its term sheets for major investments.
Revolution Ventures was co-founded by Steve Case who is known for the “Rise of the Rest” tour and book of the same name.