Some entrepreneurs view the due diligence process as a threat to their access to capital. As a result, they do not make their best effort to facilitate the process. This is the wrong approach.

The due diligence process is an opportunity for the entrepreneur to achieve three key objectives:

1. Increase VC interest: Many VCs become increasingly excited about companies as they learn more. The more the VC can learn about your business during the due diligence process, the more excited they will be likely to get. This excitement can be a valuable asset to you for building momentum.
2. Demonstrate that you are a team player: The due diligence process is the first time that you will work closely with a VC. For the VC this is a glimpse into what the future of your relationship will be like should they invest. As a result, this is your opportunity to demonstrate that you are a team player, someone that they will want to work with.
3. Educate future board members: This process will also help VCs become knowledgeable about your marketplace, making them even more valuable on your board. The knowledge that they gain from this process can be very different from the knowledge that you have. Customers, suppliers and business partners may tell VCs things that they would not tell you, giving your board a more complete perspective of your business.

These objectives are best met by proactively facilitating the process. Making the process easy for VCs and you will be best positioned to achieve all of these objectives.