Asia Startup Pulse

How VCs do due diligence: blockchain and priorities with Aly Madhavji and Mansoor Madhavji, Partners of Blockchain Founders Fund

Episode Summary

In the second episode of our series on due diligence, we learn from Blockchain Founders Fund about how they evaluate blockchain startups and what they specifically look for in the due diligence process. Recording from Money 20/20 China in Hangzhou, our host Oscar Ramos had an in-depth discussion with Aly Madhavji and Mansoor Madhavji, partners of the Blockchain Founders Fund, who shared their insights about the due diligence process, strategy and preferences when evaluating blockchain projects, and the examples how they work with early stage projects, which is also illuminating for other startups. Here are some keywords they mentioned: Trust, product, traction, finance, etc.

Episode Notes

In the second episode of our series on due diligence, we learn from Blockchain Founders Fund about how they evaluate blockchain startups and what they specifically look for in the due diligence process.

Recording from Money 20/20 China in Hangzhou, our host Oscar Ramos had an in-depth discussion with Aly Madhavji and Mansoor Madhavji, partners of the Blockchain Founders Fund, who shared their insights about their due diligence process, strategy and preferences when evaluating blockchain projects, and the examples how they work with early-stage projects, which is also illuminating for other startups. Here are some keywords they mentioned: Trust, product, traction, finance, etc.

Show Notes:
01:32 Introducing Aly and Mansoor

03:00 Portfolio and their Investment Strategy & Philosophy

06:10 How do they work globally?

07:21 Stages of Investment

07:35 First Step in Due Diligence for Blockchain

10:37 Transparency and Trust Matters

11:54 Checking Background and Company’s Strategies

13:30 How do companies react to your due diligence and how does that matter

14:38 Bringing in External Parties to the Due Diligence Process

15:23 Other Important Areas for Due Diligence

16:48 Product Evaluation in Blockchain Companies

19:06 Role of Stress Test

20:10 Measuring Traction and Evaluating Analytics

22:08 Financial Due Diligence

25:52 Their Perspectives on Startups Outsourcing Key Team Roles (e.g. CFO)

27:41 Do they look into Cliffs? 
28:55 Additional Tips from Aly and Mansoor

30:29 Due Diligence in East Asia

32:37 Contact Information and Signing Out

Contact them!
Twitter: @BlockchainFF
Twitter: @aly_madhavji
Email: mansoor@blockchainff.com

Companies mentioned:
https://www.cryptyk.com/
https://every.shop/
https://www.taloflow.ai/

Many thanks to our host Oscar Ramos and guest Aly Madhavji and Mansoor Madhavji , editor David and Geep, producer Eva Shi, organizer Chinaccelerator and sponsor People Squared. Be sure to check out our website www.chinaccelerator.com.