a16z Partner Urges VCs Not to Directly Harass Clients During Due Diligence
a16z partner Olivia Moore publicly called on other venture capitalists not to aggressively contact startup clients during due diligence, especially when the company is in the pre-funding stage.
She pointed out that direct contact with clients can severely disrupt the relationship between startups and their clients, suggesting a less disruptive approach to due diligence, which should at least involve obtaining the founders' consent in advance.
Moore emphasized that there are various alternative methods during due diligence that can collect information without harming client relationships.
This statement addresses the behavior of some firms in the venture capital circle that actively reach out to clients even during non-funding periods, calling for industry self-regulation.
As a partner in a16z's consumer and AI sectors, she made a direct appeal to her peers via public social platforms.
Market-wise, this statement reflects an increase in trust costs between founders and venture capitalists, with funding and relational resources flowing towards firms that prioritize friendly due diligence with founders; aggressive outreach may face negative feedback from founders and loss of collaboration opportunities, benefiting investors who emphasize long-term relationship maintenance.
Similar discussions have persisted in the early investment circle, but this time it was publicly named by a partner from a leading firm.
Source: Public Information
ABAB AI Insight
Olivia Moore has previously invested in several consumer and AI application companies with strong customer stickiness through CRV and a16z, relying on founder relationships and product usage feedback rather than purely external validation, making her highly sensitive to due diligence methods that undermine customer trust.
In terms of capital pathways, she promotes industry norms through public advocacy, motivated by the desire to reduce the negative externalities of due diligence on startup operations and maintain the trust foundation of the early investment ecosystem, shifting resources from aggressive outreach to collaborative reference checks with founders.
Similar cases can be seen where some top venture capitalists insist on the practice of "seeking founders' consent before contacting clients" in later rounds, as well as public complaints from founders about being harassed by clients leading to refusals for further cooperation in early stages, indicating that early investment is transitioning from aggressive due diligence to relationship-first approaches.
The structural judgment belongs to the reconstruction of the industry chain, with the mechanism being that client relationships have become core assets for startups, and aggressive due diligence shifts the external validation costs onto the invested companies, prompting leading investors to reshape industry due diligence standards through public statements.
ABAB News · Cognitive Law
The cost of due diligence is most expensive when borne by client relationships.
Trust is the hardest asset to rebuild in early investments.
Ask the founders first, then approach the clients; this is the lowest cost threshold for due diligence.