# Do your own investor diligence before the first call Prepare a two-way conversation: what this investor can fund, how decisions happen, and what you need to learn before sharing more. Source: https://12inf.ai/resources/diligence-before-the-call Updated: 2026-10-14 A first investor call is not an exam where only the founder is assessed. It is also a chance to learn whether this investor belongs in your financing process. Preparation should help you make that decision, not generate a research file so large that you never use it. Aim for a one-page meeting memo. It should contain what you know, the few unknowns that could change your choice, and the evidence you can safely share. Keep it separate from the pitch deck. ## Establish the basic possibility of a deal Before the call, check the firm's relevant strategy, stage, geographic scope, and plausible role in the round. Know whether you are speaking to an institution, an individual investing personally, or someone introducing opportunities to others. Then check the person. A current biography and a named investment can help explain relevance, but neither automatically tells you who makes the final decision. Use [the partner map](/resources/the-partner-map) to keep role and authority separate. First Round separates initial fit checks from later conversations and a partner meeting. Treat its [published process](https://www.firstround.com/how-we-work) as one firm's example, not a universal timetable. ## Replace generic questions with decision questions “What value do you add?” can produce a polished answer without helping you decide anything. Name the situation you actually expect to face. If your next milestone is selling to hospital networks, ask what support the investor has provided in a similar enterprise sales cycle. If the round needs a lead, ask whether the relevant strategy can lead and what must be true before it does. If your timeline is short, ask which steps remain and who owns them. Use a small agenda: - Mandate: can this strategy invest in a company at our current stage and location? - Round role: would you consider leading, co-leading, or participating? - Decision process: who evaluates next, and what evidence would they need? - Working relationship: who would work with us after an investment? - Risks: what currently makes this opportunity a possible mismatch? The answers may be approximate. Record whether each is a confirmed statement, an estimate, or still unknown. Turn the gaps in your research into [questions for the first investor meeting](/resources/questions-to-ask-investors-first-meeting), with a clear decision behind each question. ## Plan what you will—and will not—share Prepare a concise product explanation, a dated operating snapshot, and the milestone the financing is intended to reach. Label forecasts as forecasts. Keep revenue, bookings, cash collected, and pipeline distinct. If an investor asks for a number you cannot substantiate, say you will check it. Before disclosing customer-level details, technical secrets, or sensitive contracts, understand who will receive them and why they are needed. [Portfolio conflicts](/resources/portfolio-conflicts) helps frame overlap questions. Information-sharing decisions can have legal implications; obtain appropriate advice for your circumstances rather than treating this checklist as legal guidance. A first call does not require every later-stage diligence artifact. First Round's partner-meeting guide explains that those meetings can involve a team already briefed on the company and ready for deeper questions. Prepare for the stage you are actually entering. [First Round's partner-meeting guide](https://review.firstround.com/heres-what-you-can-really-expect-when-pitching-your-seed-stage-startup-at-a-vc-partner-meeting/). ## Worked example: the meeting that changes priority This example is fictional. ClearSpan sells energy-monitoring software to warehouses. It needs a seed lead to fund installation of a validated prototype at paying sites. The firm's sector thesis looks promising, and a partner agrees to meet. ClearSpan's memo lists an unknown: can the fund lead this round? During the conversation, the partner says the relevant vehicle only participates after another investor sets terms. That answer does not make the investor bad. It changes the next action. ClearSpan keeps the firm as a possible participant but shifts its immediate work toward lead-capable investors. Sending another technical appendix would not solve the actual constraint. In a second version of the example, the partner says yes to leading but asks for a repeatable installation cost. The next step is to verify and provide that evidence, not merely schedule a broader pitch. ## Use references later to test the relationship As interest becomes concrete, consider speaking with founders who have worked with the person. Ask for specific situations: a missed target, a difficult hiring decision, or disagreement about spending. Request permission before attributing private comments, and do not turn a single anecdote into a universal verdict. The objective is not a personality score. It is understanding whether their working style fits the decisions your company is likely to face. ## Leave with a recorded next action Write down the next deliverable, owner, and agreed date. A friendly conversation is not an investment commitment. NFX recommends keeping investor-interaction records current. [NFX's fundraising process guidance](https://www.nfx.com/post/the-non-obvious-guide-to-fundraising). Use the [investor evidence scorecard](/resources/investor-evidence-scorecard) to update what the call resolved. In [Find investors for your startup](/try), start with a brief and investor search, then keep saved candidates organized alongside your manual meeting notes. The next useful outcome is a clearer decision—not simply another meeting.