For early-stage founders, time is a non-renewable resource. At Horizon Capital, we understand the urgency of momentum, and we’ve designed our investment process to reflect that. While every company is different, our typical process from first meeting to signed term sheet takes between 6 to 8 weeks.

So what happens during those weeks, and what can you, as a founder, expect? Here’s a look behind the scenes of our due diligence (DD) process and how we partner with you throughout.

Phase 1: First Impressions and Fit

Our process begins with an intro call or meeting. We’re evaluating two things: your vision and your fit. We want to understand the problem you’re solving, your approach to product, market size, and the founding team’s unique insight or advantage.

Once there’s mutual interest, we move quickly to deeper conversations. This includes sharing a pitch deck, access to a demo or product walkthrough, and an overview of key metrics and business drivers. We’re not here to catch you off guard – we’re here to learn and align.

Phase 2: Deep Dive & Validation

If the fit looks strong, we enter a more structured diligence phase. This phase will take 2-3 meetings and typically includes:

  • Product & Tech Review: We’ll explore how your product works, what differentiates it, and what the roadmap looks like. For technical products, we may involve a domain-specific expert from our network.
  • Go-to-Market Strategy: We’ll ask how you’re acquiring customers, what the funnel looks like, pricing strategy, and how you plan to scale in your target markets, especially the U.S.
  • Financial Overview: We will ask for a budget plan and look at your burn rate, runway, and revenue trends (if relevant). No fancy projections needed, just clarity and honesty.
  • Team Assessment: We want to understand your founding team’s dynamics, background, and capabilities. We also look at hiring plans, culture, and who you’re planning to bring in next.
  • Customer & Market Validation: We may ask to speak with design partners, early customers, or references who can validate your traction and approach. We also run our own market analysis to assess competition, timing, and broader trends.

Phase 3: Decision & Term Sheet

Once diligence is complete, we move quickly to internal discussions and decision-making. If there’s alignment, we’ll present a term sheet and move to legals. We work with experienced lawyers and make every effort to keep the process efficient and founder-friendly.

We’re transparent throughout – if we’re not moving forward, you’ll know quickly and respectfully. And if we are, we’ll keep you informed and supported through each step.

How Founders Can Prepare

You don’t need to have all the answers, but preparation helps:

  • Be ready to share key documents early: pitch deck, cap table, financial summary, pipeline, or traction snapshot
  • Know your numbers and your assumptions
  • Be honest about what you know, and what you’re still figuring out.
  • Communicate clearly, and don’t be afraid to say “I don’t know yet.”

Respecting Your Time

We know how valuable your time is, and we aim to make every conversation meaningful. We avoid dragging founders through endless meetings or unnecessary delays. If we’re excited, you’ll feel it. If we’re unsure, we’ll tell you.

Our goal is to get to a clear answer – fast.

If you’re looking for an early-stage VC that’s hands-on, transparent, and built for speed, Horizon Capital is here to support your journey.

Want to know more about us? Read our FAQs