Gonzalez-Uribe, Juanita; Klingler-Vidra, Robyn; Wang, Su; … - 2023
We examine the value added by venture capital investors during the due-diligence process. We use data from a seed fund … that quasi-randomly assigns applicants to due diligence, creating a natural experiment. We find that due-diligence … suggest that venture capital due diligence can mitigate entrepreneurial capability constraints in determining whether and how …