WHY VENTURE DUE DILIGENCE GOT WORSE FOR DEEP TECH

Summary from the TLDR Founders newsletter

Venture due diligence for deep tech has worsened, driven by deployment pressure, herding behavior, reliance on lead investors' reputations, and the removal of independent expert review layers. Deals in frontier tech sectors like AI and quantum often close rapidly without thorough technical vetting, exposing investors to unverified risks. Limited partners are advised to mandate independent technical feasibility reviews before deep-tech investments to enhance diligence and protect their capital.