Behavioral due diligence, focusing on the behavior of the team under pressure, is a critical aspect in determining the success of early-stage startups.
Despite its significance, behavioral diligence is often not given enough attention and is not a standard practice in many firms.
Venture capital tends to prioritize financial risk over human risk, leading to behavioral factors being overlooked in investment decisions.
Understanding behavioral patterns, leadership styles, and emotional intelligence of a team is crucial for long-term success in the startup ecosystem.