“Every forecast takes a number from today and multiplies it by a story about tomorrow.”
— Morgan Housel
That quote has stuck with me while reading his latest. It’s especially relevant in Tech Due Diligence storytelling, where both investors and founding teams are placing bets not just on systems and scalability—but on belief.
Due diligence isn’t just about what you’ve built. It’s about whether the story behind the build holds up under pressure. It’s a credibility test, and the best founders pass it by framing their business in a way that’s clear, human, and compelling.
In fact, 57% of investors say a strong founding team story significantly impacts their decision-making—even more than market size or traction.
📌 Source: DocSend Startup Index
Morgan Housel backs this up with another lesser-known gem:
“New ways of looking at something are better than new ways of doing them.”
In other words: two founders, same product. One reinvents it. The other just reframes it.
The storyteller wins.
When we run Tech Due Diligence, we’re not only assessing code and architecture—we’re stress-testing the founder’s narrative. Can it survive hard questions? Does it create confidence? Will it travel beyond the pitch room?
Here are three ways to strengthen your Tech Due Diligence storytelling:
1. People First
Don’t bury your team at the end of the deck. Investors are investing in people, not just product. Show the team up front—engineers, CTO, leadership. Highlight what they’ve learned, shipped, and solved.
A 2023 survey found that 92% of VCs say the quality of the founding team is the top predictor of startup success.
📌 Source: First Round Capital’s State of Startups
Showcase them as the ones who will adapt, ship, and scale through uncertainty.
2. Believability Over Hype
Pitch “the art of the possible,” but don’t pretend risks don’t exist. Investors can spot a hand-wave a mile away. The smartest founders show they’ve mapped the risks—and have a plan.
According to McKinsey, investors now spend 2x more time probing operational risk and technical execution than they did five years ago.
📌 Source: McKinsey Tech Due Diligence Report
Founders who calmly outline downside scenarios build more trust than those who try to avoid the topic.
3. Make It Exciting
I’ve lost count of how many founders proudly tell me: “We’re pitching conservatively.” I get the instinct—but when it’s your first impression, it often falls flat.
You don’t need to exaggerate. But you do need to inspire. Help investors see what’s possible if your team delivers. Bring clarity, not constraint.
Remember, you’re not just surviving Tech DD. You’re selling the future.
In Closin
Tech Due Diligence storytelling isn’t a fluffy extra—it’s part of what gets deals done. Your numbers tell one half of the truth. Your narrative tells the other.
Make it human. Make it credible. Make it compelling.
