Here’s a fool-proof framework I use to do the FIRST round of due diligence on the early-stage projects 👇
➡️ STEP 1: WHO YOU ARE
Q1: What are you building now?
Do not confuse early-stage with clueless.
If you cannot explain what you’re building in 3 sentences, VCs aren’t your target audience. Incubators, accelerators, angels, or advisors are.
Clarify your PMF, positioning, and narrative before pitching.
Q2: Have you built ANYTHING before? What happened to your previous business?
Most VCs won’t take risks on first-time Web3 founders.
Exceptions:
- Vitalik’s number 2
- Founding team of Top 100 CMC
- Exceptional track record in Web2 (large exit or M&A)
Harsh? Yes. Unfair? No.
VCs report to LPs. “Giving someone a shot” doesn’t cut it when the returns fall flat.
Q3: What is your track record in XYZ space?
Crypto isn’t the Wild West anymore. Narratives peak and die in 90 days.
So if you've never touched payments before - don't start by building a full-stack financial infrastructure from scratch.
Start where you have an edge. Not where you have to Google everything.
➡️ STEP 2: HOW YOU THINK
Q4: What’s your plan to turn $1M into $100M in the next 3-5 years?
Best Founders challenge the playbook and reduce risk layer by layer.
Our job is to challenge your GTM. “If it’s that easy in your head—why haven’t your competitors already done it?”
Do you have:
- Unique distribution?
- Better incentives?
- Deep industry connections?
- Or are you just betting on being “better at execution”?
Q5: I think XYZ won’t work in your project. How will you overcome this challenge?
Ego killed more deals than bad pitch decks.
If a founder can’t handle pushback or answer hard questions - we don’t move to the next call. Simple.
We get it - your project is your baby. Learn to treat feedback as a stress test - not an attack.
To my fellow VCs - what questions do you ask the Founders at the beginning of the DD process?
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If you’re an investor looking to exchange deal-flow and chat about the market, please send me an email to [email protected].
We invest in early-stage projects with a valuation below $20M, in stablecoins, payments, infra, and RWA.
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