Overview
This case is about due diligence of venture capitalist. The Valhalla partners is the early stage of venture capital company that made by three people. At that time there are so many venture companies and many venture capitalist, so most of venture capitalist want to find the good company and invest to it before other capitalists come. However Art marks thought that it should be changed, so they made the process about Due diligence and they wanted to run trial to TX. Of course the due diligence needs much more time than before, Valhalla partners thought that it should be right for avoiding risks.
1. Provide an assessment of Valhalla’s due diligence process. What are the benefits of the process and what are the risks?
Due diligence needs lots of time, because they should prepare, and they meet and discuss. Sometimes it disturb fast decision or let good companies halt. However due diligence make them closer, because they should confirm every single word and thought. In this process they can make the credibility and also venture capitalist can invest real great company.
2. Based on the info in the memo, what are the top (at least 3) risks facing Telco Ex?
(1) management team
There are two main managers in TX. First, there is CEO who is over 70s. This is too old to go next step of company. Second, there is CTO who is son of current CEO. This is not risk, but this is some special relationship with CEO.
(2) There are some strong
