Understanding the Signals That Make Investors Say “No”

Early-stage investing is equal parts promise and uncertainty.

Every investor has experienced this moment: a deal that looked perfect on paper revealed itself as deeply flawed only after closer examination—or worse, after capital was deployed.

But why do some warning signs immediately end discussions while others go unnoticed until they become expensive problems? What separates the signals that trigger immediate rejection from those that slip past experienced investors?

At DueCap, our work centers on detecting these signals before they become costly mistakes. Now, we're turning that lens toward the investment community itself.

The Research: Why We're Asking

We're conducting the DueCap 2025 Venture Red Flag Survey to understand how professional investors actually evaluate risk across stages—from Seed through Series C—and which warning signs carry the most weight in their decision-making.

The research will map how different investor types interpret:

  • Founder alignment signals: When does founder behavior raise concerns versus when does it seem manageable?
  • Traction quality: What distinguishes real growth from unsustainable momentum?
  • Operational foundations: Which system gaps are acceptable at Seed but unacceptable at Series A?
  • Technical and execution readiness: Where do investors draw the line on technical debt or product maturity?

These are the same dimensions we evaluate in our signal-based due diligence work. We want to understand how the broader investment community weighs them in practice.

Our goal: build a data-driven picture of how modern investors perceive and prioritize risk in early-stage ventures.

Who Should Participate

We're inviting participation from:

Venture Capital Funds managing early and growth-stage portfolios
Family Offices & Endowments exploring or expanding venture allocation
Angel Syndicate Leads making repeated early-stage investment decisions
LPs & Institutional Investors overseeing fund performance and portfolio oversight

The survey is free, confidential, and open through the end of the quarter.

What Participants Receive

All verified participants will receive a complimentary copy of the DueCap 2025 Venture Red Flag Report before public release.

The report will include:

  • Stage-specific red flags: The warning signs that most commonly stop deals at Seed, Series A, and Series B+
  • Divergence analysis: Where investor perceptions differ most across stages and investor types
  • Overlooked diligence areas: The dimensions most frequently missed or deprioritized
  • Decision confidence patterns: How instinct, structure, and systematic analysis correlate with conviction levels

This isn't generic survey data. It's actionable intelligence on how the investment community evaluates risk—and where collective blind spots exist.

How to Participate

The survey takes approximately 90 seconds to complete.

Your responses remain confidential. Results will be shared directly with verified respondents before any public release.

👉 Take the DueCap 2025 Venture Red Flag Survey

Why This Matters

This research continues DueCap's core mission: helping investors achieve clarity before capital by understanding the signals that define strong decisions—and the blind spots that compromise them.

We believe the best insights come from examining collective patterns. What do experienced investors consistently notice? What do they routinely miss? Where does intuition align with evidence, and where does it mislead?

By participating, you're contributing to a clearer, data-backed understanding of how modern investors evaluate early-stage risk and build conviction.

Join us in mapping the signals that matter.


DueCap — Clarity Before Capital

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