I am a senior technical leader. Recently a VC partner that I have no common connections with(may be 1) connected on LinkedIn asking if I could take half an hour to review a potential series A deal for a startup. I suppose this is being done as part of technical due diligence. I haven’t heard of such thing ever and don’t even know how to respond. Is this a common thing that happens these days? The startup being pointed to is not really my field of expertise. How should I respond. His profile is genuine and is indeed a partner at a respectable VC firm.
Do a great job with the due diligence (as much as you can). Build a relationship with them. It's not easy making connections with a VC, especially at the partner level. Who knows, it might turn into a role at one of their portfolio companies in the future? I'd take every networking opportunity seriously.
Thanks @Mltisanti thats what I thought too, but I do not want to set unrealistic expectations as it is not my field of expertise. I will get the ball rolling i.e accept and respond to the message. Any suggestions on how to go about the due diligence part? Any personal experience?
Due diligence can take many forms. I can't comment on the technical side of the diligence. But in general on the business side, you want to look at the entire market for that technology and try to understand the competitive landscape and come up with an estimate for market size (VCs typically only invest if the market is large enough). Is the market really fragmented or are there only a few companies. Who are your target company's biggest competitors? What are they good at? What are the barriers to entry? Are there any network effects in place where a first mover has an advantage? Can an Amazon or Google just enter the market and kill you immediately? Think broad and then dive deep into each aspect. Good luck!
If you’re a senior technical leader this is a way for the VC to: 1) Recruit you for a role at a portfolio company of theirs 2) Looking to hire / learn about you as they are looking for advisors to enter into a new market
Be sure to stay within your area of expertise, the VC will be relying on that part.
I've done this a few times. Only once was it from a LinkedIn cold call. All good connections to have. Suggestions: 1. Be honest, if it's not your area, say so. 2. Be prepared in case they ask you about your area of expertise. 3. You may get asked if you know good investments in your area, be prepared. (Note that sometimes they are trying to be secretive about area of investment) 4. You may get asked to evaluate a company, a pitch or a person. 5. If you plan on charging, know your worth, don't guess over the phone. You don't have to charge if you want to go that route. A couple of hours might be ok pro-bono, but don't sell yourself short. 6. This whole thing may be an interview for you. 7. It may also be a scam (unlikely, but hey, be on your toes)
What exactly is your problem? If you want money ask for money