POTENTIAThe real cost of skipping diligence on a co-founder
A term sheet gets weeks of legal review. A new co-founder often gets a few good conversations and a shared sense that the chemistry feels right. The asymmetry is understandable — chemistry matters, and formal diligence on a friend can feel awkward — but the decision it protects is at least as consequential as the fundraise.
A structured, consent-based check doesn't replace the conversations and the gut read. It adds one more real data point: a track-record retrospective, a look at how consistent the person's public narrative has been over time, a read on their actual demonstrated work against what they say they bring to the table.
The founders who'd benefit most from running this kind of check on a prospective co-founder are usually the ones least likely to think to ask for it — because asking can feel like it implies distrust. Framed as standard practice rather than a special accusation, it doesn't have to.
See how a consent-based check actually works.