Energy Matters in Tech DD

When you run multiple due diligence projects at once, patterns start to emerge. One of the clearest is energy. Some teams come in hot — sharp, switched on, ready to go. Others? It's less pulling teeth, more dragging a piano uphill in flip-flops.

You can’t help but compare them — it’s like sports day for management teams. And while we’re not handing out medals, we are quietly noting who’s going to be a dream to work with post-deal… and who might be a problem.

🟢 The Energetic Team:

1. Responds to emails the same day — no chasing required.
2. Joins meetings prepared, curious, and open to learning.
3. Voluntarily shares information beyond what’s asked.
4. Surfaces “known knowns” with context, not defensiveness.
5. Is self-aware — honest about team dynamics, gaps, and growth areas.

These teams give us confidence. Not because they’re perfect, but because they engage fully and transparently. They're not just being evaluated — they’re evaluating with us. That’s powerful.

🔴 The Laggards:

1. Take days (sometimes weeks) to respond to basic requests.
2. Deliver partial or misaligned information when they do respond.
3. Appear defensive or passive in meetings — no hunger to learn.
4. Avoid surfacing risks or known challenges.
5. Shut down conversations about team dynamics or culture.

Working with them feels like running a marathon through treacle.

Why does this happen?

Several reasons crop up again and again:

1. Misalignment — the team doesn’t see how the deal benefits them, so they’re half in.
2. Gaps in knowledge — they don’t have the data or infrastructure to respond well.
3. Gatekeepers — an external party is controlling access or information.
4. Deliberate slowdown — very rare, but we’ve seen experienced teams strategically slow things down to avoid scrutiny. (I recall one CEO — previously a DD consultant — who did exactly this.)

Why it matters

Low energy doesn’t just slow us down — it creates blind spots:

1. We can’t confidently conclude anything material.
2. We’re often left with assumptions rather than insight.
3. We can't triangulate forecasts, projections, or growth plans with the tech and team reality.

That’s not just frustrating — it’s risky. For investors. For everyone.

If the team is like this pre deal....

We flag unresponsive teams early — both to them and the investor. But here’s the bigger issue: if this is how they show up during DD, how are they going to show up post-deal?

Energy is a signal. Ignore it at your peril.