Service:
Investor Insight Engine | IIE
Client:
Behavioral Due Diligence
Duration:
8 weeks
Date:
Jul 2, 2025
Investing in Potential, Not People
A venture capital firm noticed a troubling trend: strong products, failed startups.
Most post-investment breakdowns were caused by founder conflict, ego collisions, and poor communication under stress.
The fund’s partners needed a way to evaluate alignment readiness — not just market traction.
Behavioral Due Diligence 2.0
1. Pre-Investment Diagnostic
Conducted IIE scans for 5 shortlisted startups.
Profiled founder teams by decision style, communication vector, and friction potential.
Flagged misaligned partnerships and emotional risk indicators.
2. Compatibility Scoring & Advisory
Developed IIE compatibility indexes (0–100 scale).
Delivered reports visualizing role clarity, leadership balance, and conflict triggers.
Advised partners on equity distribution and governance strategy based on behavioral data.
3. Post-Investment Integration
Offered follow-up alignment coaching for selected startups.
Created a “Founder Performance Board” with monthly check-ins and recalibration metrics.
The Results — Investing with Behavioral Foresight
Two high-risk investments were paused, saving €3.4M.
Average portfolio return improved 18% in 9 months.
Founder–investor conflict incidents dropped by 42%.
Improved partner confidence and faster decision cycles.
“Traditional due diligence tells you what founders build. IIE tells you how they’ll behave when pressure hits. This system saved us from expensive mistakes and gave us a framework to assess leadership like a performance asset. It’s behavioral investing, not intuition.”
Alex Moreno
Managing Partner, Altus Ventures
