01 / Introduction

Smart Steps - Efficient Due Diligence on 3 Startups

Phase: Initial 3-Company Evaluation & Selection

This framework helps students quickly evaluate three startups, focusing on key areas like market, technology, team, and preliminary financial checks. The goal is to identify which startup merits a deeper dive for the VCIC Executive Summary.

02 / Market Assessment

Area 1: Market Opportunity Assessment

Smart Step

Quickly assess the size, growth, and key trends of the market each company addresses. Identify major drivers and potential headwinds.

AI Prompts

Perplexity – Market Sizing & Trends

"What is the estimated global market size and projected growth rate (CAGR) for [Specific market addressed by Company A, e.g., 'redox flow batteries for grid storage']? What are the main market drivers and challenges impacting this sector currently? Provide sources." (Repeat for Company B & C.)

Grok – Real-time Buzz/News

"What are recent significant news headlines or discussions on platforms like X (Twitter) related to general trends in [Company A's Industry, e.g., 'grid energy storage solutions', 'advances in cancer diagnostics', 'alternatives to animal testing in pharma']? Any major breakthroughs or setbacks mentioned?" (Repeat for Company B & C's industries)

03 / Technology Assessment

Area 2: Technology & IP Assessment

Smart Step

Understand the core technology, its claimed differentiation, development stage, and any mentioned IP from the provided documents. Identify obvious technical risks mentioned.

AI Prompts

Gemini – Analyze Provided PDF

"Analyze the provided PDF document for [Company A Name]. Explain their core technology in simple terms (1-2 sentences). What is its primary claimed advantage over existing solutions? What is the stated current development stage (e.g., concept, lab, prototype, preclinical)? Does the document mention specific patents or pending IP?" (Repeat for Company B & C)

Perplexity – Patent Check, if applicable

"Summarize the core invention or claims described in the patent found at [Paste patent link from company PDF, if provided]. Who are the listed inventors?" (Use only if patent link is directly available in the startup description)

04 / Team Assessment

Area 3: Team Assessment (Initial Scan)

Smart Step

Identify key personnel from the documents. Do a quick web search (if names are provided) for relevant background. Note any explicitly stated team strengths, gaps, or needs (e.g., "looking for partners," "needs business expertise").

AI Prompts

Gemini – Analyze Provided PDF for Team Info

"Based on the provided text for [Company A Name], who are the key people, research groups, or universities involved? What are their roles or expertise areas as described? Does the text explicitly state they are looking for specific partners, funding, or team members?" (Repeat for Company B & C)

Perplexity – Quick Background Check, use cautiously

"Provide a brief background summary for [Key Person's Name mentioned in PDF], focusing only on professional expertise or publications relevant to [Company's Field]. Prioritize information from academic profiles, LinkedIn, or official university/company sites." (Self-Correction: Mindful results might be limited or require verification. Avoid deep PII searches)

05 / Synthesis & Comparison

Area 4: Synthesis & Initial Comparison

Smart Step

Bring together initial findings for each company. Use AI to draft preliminary "Reasons" and "Reservations" aligned with the VCIC template structure. Create a simple comparison framework.

AI Prompts

Free GPT/4o or Gemini – Draft Initial Pros/Cons

"Based only on this initial scan for [Company A Name] [Paste 1-2 bullet points each summarizing initial findings on Market, Tech, Team], draft 2 potential 'Reasons' why this might be interesting and 2 potential 'Reservations' or key questions for deeper diligence. Keep concise for comparison notes." (Repeat for Company B & C)

Free GPT/4o or Gemini – Comparative Overview

"Create a simple comparison table summarizing [Company A], [Company B], and [Company C] based only on this initial analysis. Include columns for: Company Name, Core Tech Area, Initial Market Impression (e.g., Large/Niche, Growing/Stagnant?), Tech Stage/Risk (e.g., Early/Proven, High/Low Risk?), Key Question/Reservation."

06 / Competitive Landscape

Area 5: Quick Competitive Landscape

Smart Step

Identify notable competitors or alternative solutions. Pinpoint each company's approximate positioning (e.g., cost, performance, uniqueness).

AI Prompts

Perplexity – Competitor Snapshot

"Who are the top 3–5 competitors in [Company A's sector]? Briefly note their main product or service, funding status, and any market traction."

Gemini – High-Level Positioning

"Based on these competitor summaries and [Company A Name's] claims, describe how [Company A] might stand out or where it could be vulnerable."

07 / Business & Financial

Area 6: High-Level Business/Financial Peek

Smart Step

Perform a quick check of how the venture might make money, the expected revenue model, and any hint of pricing/cost structure. Note if they have paying customers or raised capital.

AI Prompts

Gemini or GPT-4 – Quick Monetization Overview

"From the [Company A] PDF or any public mention, can you infer the primary business model (hardware sales, subscription, licensing) and a typical price range or cost structure? Do they mention prior/existing funding? Any revenue yet?"

Groq – Brainstorm Key Financial Questions

"Generate 3–5 critical questions to clarify [Company A Name's] revenue model and cost drivers (e.g., one-off pilot projects vs. recurring revenue, significant manufacturing costs, regulatory expenses)."

08 / Conclusion

Outcome of this Phase

By running through these steps for all three companies, you or the students should have a structured, albeit preliminary, comparative overview. This comparison—focusing on apparent market size, tech differentiation/risk, team issues, and key unanswered questions—should provide a stronger basis for selecting the one company that seems most compelling (or least problematic) to take forward into the deeper due diligence phase required for the full VCIC Executive Summary.

Next Steps:

After selecting your primary company, proceed to the SERAF Deep Dive for a comprehensive analysis of all aspects of the chosen startup.