As a venture capitalist, your due diligence checklist is likely a masterclass in financial modeling, market analysis, and product-market fit. You've scrutinized the cap table, dissected the go-to-market strategy, and run every conceivable scenario on the pro-forma. But what about the single most critical asset in an early-stage company? The people.

The team isn't just a line item; it is the engine of value creation. A brilliant idea can fail with the wrong team, while a mediocre idea can be pivoted into a unicorn by a world-class one. Yet, a startup’s talent strategy—or lack thereof—is often a glaring omission in traditional due diligence. As a Head of People who works with leading VCs, I’ve seen firsthand how a meticulous approach to talent due diligence can de-risk an investment and reveal the true potential of a company.

This isn't just about vetting the founders. It's about auditing their hiring engine. Here are the critical questions to ask before you write a check.

Phase 1: The Founder & The Strategy

This is your first and most important area of inquiry. The founders set the tone and the strategy for everything that follows.

• Founder's Talent Mindset: What is the founder's philosophy on hiring? Do they view it as a necessary evil or a core competency? A founder who sees hiring as their number one priority is a powerful signal.
• Recruitment Strategy: What is the company’s hiring plan for the next 12-18 months? Is it reactive or proactive? Is there a clear vision for the types of roles needed to execute the business strategy?
• The "Why" Behind the Team: How does the founding team describe their current team? Do they speak with genuine respect and admiration for their people, or do they see them as simply cogs in the machine?

Phase 2: The Hiring Process & Infrastructure

A startup’s hiring process is a direct reflection of its operational maturity. A chaotic process signals a lack of discipline and a high potential for expensive mis-hires.

• Process Consistency: Is there a consistent, repeatable process for hiring? Ask to see an example of a job description, an interview scorecard, and a typical offer letter. An ad-hoc process is a major red flag.
• Candidate Experience: How does the company ensure a great candidate experience? Are they tracking metrics like time-to-hire and offer-acceptance rates? A high-friction process alienates top talent.
• Sourcing Channels: Where does the company find its talent? If the answer is "LinkedIn and job boards," they are not strategically building a pipeline. Ask about their use of referrals, community engagement, and proactive sourcing.

Phase 3: The Culture & Retention

A startup's culture is its operating system. It determines who gets hired, who stays, and how the team performs under pressure.

• Culture Definition: How would the founders and the team describe the company culture? Can they articulate it beyond generic buzzwords? A strong, defined culture is a powerful recruitment and retention tool.
• Onboarding: What does the onboarding process look like? The first 90 days are critical for a new hire's success and retention. A well-structured onboarding process signals that the company is serious about setting its people up for success.
• Retention: What is the company's churn rate? What are the key reasons for departures, and how is the company addressing them? High churn is a warning sign of deeper cultural or operational issues.

The ROI of Talent Diligence

Your investment is not just in a product; it’s in a group of people. By performing rigorous talent due diligence, you are not only de-risking your investment but also identifying where you can add the most value post-investment.

• Identifying Red Flags: You can pinpoint weaknesses in the talent strategy that, if unaddressed, could hinder growth.
• Informing Your Support: You can use your findings to provide strategic guidance, connect the company with talent networks, and advise on best practices.
• Amplifying Deal Flow: You'll build a reputation as a VC who truly understands and values talent, which will make you more attractive to founders building world-class teams.

VC Talent Due Diligence Checklist

Use this checklist to ensure you're asking the right questions.

• [ ] Does the founder view hiring as a core competency?
• [ ] Is there a clear hiring plan for the next 12-18 months?
• [ ] Is the hiring process consistent and well-documented?
• [ ] Does the company use a mix of inbound and proactive sourcing channels?
• [ ] Is the candidate experience a priority for the team?
• [ ] Can the founders articulate their company culture with clarity and authenticity?
• [ ] Is there a formal, structured onboarding process for new hires?
• [ ] What is the company's retention rate, and what are the key reasons for departures?