References: Where the Real Due Diligence Happens

A founder's deck shows you the highlight reel. References show you the behind-the-scenes footage. If you're not conducting thorough reference checks before IC, you're presenting an incomplete picture to your partners.

Who to Talk To

You need at least 6-8 references across these categories:

• On-list (founder-provided): 2-3 people. These will be positive—but the nuance matters
• Off-list (you find them): 3-4 people. Former colleagues, past co-founders, customers, ex-employees
• Expert references: 1-2 industry experts who can validate the market thesis

Off-list references are where you'll get the most honest signal. Use LinkedIn to find former colleagues, check the founder's previous companies on Glassdoor, and ask your network for backdoor connections.

Reference Call Template: Founder References

Start with context-setting: "I'm doing diligence on [Company]. [Founder] mentioned you as someone who knows them well. I'd appreciate 15 minutes of candid feedback."

Working Style & Leadership

• "How would you describe [Founder]'s leadership style?"
• "How do they handle disagreement or conflict within the team?"
• "What's their biggest strength? What about their biggest area for growth?"
• "How do they perform under pressure—say, when things aren't going to plan?"

Execution & Judgment

• "Can you give me an example of a difficult decision they made? How did they approach it?"
• "How do they prioritise when everything feels urgent?"
• "Have you seen them change their mind based on new information? How did that go?"

The Killer Questions

• "On a scale of 1-10, how likely would you be to work with them again?" (Anything below 8 is a red flag)
• "If you were investing your own money, would you back this founder?"
• "Is there anything I should know that I haven't asked about?"

Reference Call Template: Customer References

• "How did you first hear about [Company]?"
• "What problem were you trying to solve when you started using their product?"
• "What alternatives did you evaluate? Why did you choose this one?"
• "What would happen if you couldn't use the product tomorrow?"
• "Would you recommend it to a peer? Have you already?"

Reading Between the Lines

What people don't say is often more telling than what they do:

• Faint praise — "They're... fine to work with" (translation: they're difficult)
• Hesitation — Long pauses before answering the "invest your own money" question
• Deflection — Pivoting to generic positives when asked about specifics
• The qualifier — "They're great... in the right environment" (translation: there's a wrong environment)

Documenting References

Create a reference summary that includes the key themes across all calls. Identify consistent patterns—both positive and concerning. Present this alongside your Predict Ventures quantitative benchmarks to give partners a full 360-degree view: the numbers and the people behind them.

Ethical Guidelines

• Always be transparent about why you're calling
• Respect confidentiality—some founders haven't told their current employer they're fundraising
• Don't share what one reference said with another
• Be thoughtful about off-list references that could jeopardise the founder's current position

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