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Due diligence is too timely and expensive #security #riskassesment

Mon, 29 May 2023 20:28:00 +0000

Due diligence is the process of conducting an investigation, review, or audit to verify facts and info about a particular subject.

Often due diligence is done in the business world to verify a business's value or economics. Usually investors, businesses, and governments will do due diligence to get a full picture on a company or person.

However many startups, private investors, or under-resourced organizations cannot afford or don't have the time to manage a thorough due diligence investigation.

Many internet companies sold through online marketplaces end up being scams or have fraudulent revenue or profit numbers.

Ex: JP Morgan Chase getting scammed for$100+ million dollars, simply because of bad, biased, or non-existent due diligence.

https://www.theverge.com/2023/4/5/23671000/jpmorgan-frank-fraud-fintech-startup-ceo-javice-charged-student-financial-aid

Major fraud cases like Theranos, Nikola, and FTX are simply a result of bad or non-existent due diligence.

We need a quick, thorough, and affordable way to conduct due diligence for private investors, startups, buyers, and more.

4 points posted by entrepreneurtim

Very high bus factor among solo founders #riskassesment #business

Thu, 09 Sep 2021 05:23:00 +0000

The "bus factor" is the minimum number of team members that have to suddenly disappear from a project before the project stalls due to lack of knowledgeable or competent personnel. -Wikipedia.

The bus factor is very high among solo founders, solopreneurs and indie hackers because they are often the only person working on the product and when they're unable to continue working due to any number of reasons the product is immediately dead. Investors rarely invest in the startups of solo founders due to this.

Even typical startups run by solo founders with employees, investors are always at the risk of high bus factor because they're often the sole decision maker of the startup, leading to various problems ( /problems/27 ) if they're suddenly incapacitated.

Straightforward solution to reduce the bus factor is to get co-founders(s), qualified team and hedge the risks. But being a solo founder has its benefits and there's need-gap in solutions to reduce the impact of high bus factor among those who have decided to be a solo founder.

3 points posted by Abishek Muthian