Abstract

Due diligence is a critical component of the venture capital (VC) cycle. Within this stage, the assigned time and efforts largely dictate the probable success of an investment portfolio (Smart, 1999). Though, only a small number of studies have aimed to capture the methods and approaches employed in this process (Zacharakis and Shepherd, 2007). As a result, an understanding of how VCs spend their time during due diligence remains understudied (Jaaskelainen et al., 2006). According to Petty and Gruber (2011), what does exist in the realm of VC time allocation tends to center around the management of the fund’s existing portfolio, resulting in a disproportional emphasis on post-investment allocation of time. This study has sought to contribute to achieving a deeper understanding of this aspect.

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