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How to Do Due Diligence on a Startup in Under 10 Minutes

A step-by-step checklist for quick startup research covering filings, directors, team background, sentiment, and hiring signals.

How to Do Due Diligence on a Startup in Under 10 Minutes

VCs, angels, and B2B founders waste hours compiling fragmented startup data. But with the right approach, you can assess a startup's viability in under 10 minutes using free tools. This guide provides a systematic checklist for early-stage due diligence, focusing on the checks that matter most at different growth phases.

The 10-Minute Startup Due Diligence Checklist

Minutes 1-2: Basic Company Filings

Start with official records to verify legitimacy and structure.

  • Companies House search: Confirm incorporation date, registered address, and active status
  • Director verification: Check director names and any disqualifications
  • Share structure: Look for unusual ownership patterns or nominee shareholders

Why it matters: Catches dissolved companies or those with problematic leadership.

Minutes 3-4: Team Background and Experience

Assess the founding team's track record and credibility.

  • LinkedIn profiles: Review founders' previous roles, education, and connections
  • Crunchbase: Check for prior startups, exits, or notable achievements
  • News search: Look for press coverage or industry mentions

Key at early stage: Team quality is often more important than product-market fit.

Minutes 5-6: Financial Health Signals

Even pre-revenue startups show financial patterns.

  • Funding history: Recent rounds, amounts, and investor names via Crunchbase
  • Hiring activity: Job postings indicate burn rate and growth plans
  • Office address: Virtual vs. physical shows resource allocation

Red flags: No recent funding but aggressive hiring suggests cash burn issues.

Minutes 7-8: Market and Product Validation

Gauge traction and market fit.

  • Website analysis: Check for MVP, user testimonials, or beta sign-ups
  • Social media: Follower growth and engagement levels
  • App stores: Download numbers and ratings if applicable

Pro tip: Look for third-party validation like industry awards or partnerships.

Minutes 9-10: Sentiment and Risk Assessment

Final check for hidden issues.

  • Review platforms: Trustpilot, Glassdoor for any early feedback
  • News alerts: Search for negative press or legal issues
  • Domain age: Recent domains suggest new ventures

Context matters: Early-stage startups may have limited reviews—focus on what exists.

Adapting the Checklist by Startup Stage

Pre-Seed (<£500k raised)

  • Focus: Team background (70%), idea validation (20%), basic legitimacy (10%)
  • Skip: Deep financials—most won't have them
  • Goal: Assess founder credibility and market opportunity

Seed (£500k-£2m raised)

  • Focus: Product traction (40%), team execution (30%), financial prudence (20%)
  • Add: Customer acquisition metrics, early revenue signals
  • Goal: Validate go-to-market strategy

Series A+ (>$2m raised)

  • Focus: Scalability (40%), competitive moat (30%), unit economics (20%)
  • Add: Detailed financials, customer churn, market share
  • Goal: Assess long-term viability

Common Mistakes to Avoid

Over-Reliance on One Source

Don't trust Crunchbase alone—cross-reference with Companies House and LinkedIn.

Ignoring Soft Signals

Hiring freezes or director changes can signal trouble even in funded startups.

Premature Deep Dives

For early screening, focus on disqualifiers rather than detailed analysis.

How Automated Due Diligence Accelerates Research

Manual checks work but scale poorly. Automated tools can:

  • Aggregate data from 20+ sources instantly
  • Flag red flags with risk scores
  • Track changes over time
  • Generate standardized reports

This reduces research time from hours to minutes while improving consistency.

When to Dig Deeper

If the 10-minute check raises concerns, investigate further:

  • Request financial statements
  • Interview references
  • Conduct legal checks
  • Analyze competitive landscape

But for initial screening, this checklist catches 80% of major issues.

Action Steps

  1. Bookmark key sites: Companies House, Crunchbase, LinkedIn
  2. Create templates: Standard checklist for consistent reviews
  3. Set time limits: Use a timer to stay disciplined
  4. Track decisions: Note why you passed/failed each startup

By following this systematic approach, you'll make faster, more confident investment decisions. Remember, due diligence isn't about finding perfect companies—it's about avoiding obvious mistakes.

Ready to automate your startup research? Try Ventur's 10-minute due diligence workflow.

Questions about startup vetting? Reach out at hello@venturhq.co.uk

Happy investing,
The Ventur Research Team