Ask the Team: How We Go From Interest to Investment

Launching a venture fund means making a hundred key decisions—fund size, check size, stage focus, capital reserves. Once those pillars are in place, one thing matters most—how you decide what to invest in. Every firm has its quirks, but a strong investing process is the throughline.  

In the opaque world of private markets, we’re awash in data: pitch decks, spreadsheets, founder interviews, hearsay. It’s easy to get lost in the noise. At Motley Fool Ventures (MFV), our approach is simple: gather the right information, make sharp decisions, and move fast—because time is our most valuable currency.

In early-stage investing, information comes at you fast. Our approach is designed to cut through the noise and get to the core: is this a great team, solving a real problem, in a market that’s ready for disruption? If so, how quickly can we build conviction?

The deal landscape changes constantly. Some opportunities come in cold, many through trusted referrals, and some through our own outreach. Once a company catches our eye, our diligence process kicks in.

Here’s how we run it:

Phase 1: Screening for Fit

We focus on post-Seed/Series A companies with $1M+ in revenue, 100%+ year-over-year growth, and healthy gross margins.

The process begins with an introductory call between the founder and a member of our team. It’s a conversation, not a pitch. We listen closely for clarity of vision, traction, cultural alignment, and whether this feels like a partnership worth pursuing.

If it’s a fit, we request data room access and create a one-page summary covering the leadership team, product, business model, customer traction, and capital history. That summary is discussed in our twice-weekly team meeting, where we decide whether to move forward.

Phase 2: Live Q&A and Deep Dives

The next step is a one-hour video call between the full MFV team and company leadership. No slides—just an open, unfiltered conversation. We come prepared with thoughtful questions, and leave time for founders to ask us their own.

Afterward, we huddle internally. If interest is high, we launch a tailored diligence sprint—co-led by two MFV team members. Every diligence plan is tailored to the company, but most involve a deep dive into financials, operations, culture, market dynamics, legal structure, and references from customers and investors.

To do this work well, we speak not only with the founder but also with other members of the leadership team, customers, co-investors, references, and experts from within our network. We analyze materials provided by the company and seek out secondary sources to further validate our thesis.

All of this feeds into a comprehensive investment memo—covering the team, strategy, business model, market, and deal terms—which becomes the foundation for our final evaluation. Every member of the investment team weighs in. The managing partner makes the final call.

Phase 3: Closing the Deal

Once the decision is made, we move into closing. If we’re leading, we collaborate on the term sheet alongside the company and legal counsel. If not, we review terms and move through our legal diligence checklist: incorporation docs, employment agreements, IP, background checks, and more.

Before funds are wired, we share a Bright Light Memo—our final alignment tool. In addition to sharing the highlights from our diligence process with the company, the memo  surfaces risks, flags upcoming needs, defines milestones and reporting expectations, and makes sure everyone is on the same page.

Phase 4: Post-Investment

Diligence doesn’t end with a yes—it sets the tone for how we partner from day one. Once a deal is signed, we help close out the round, onboard the team, and introduce them to the MFV network—often starting with a virtual session where founders and LPs connect directly.

From Process to Partnership

Every investment wire begins a long-term relationship. That’s why we continuously refine our process—not just to make decisions more efficiently, but to ensure they reflect the quality of thinking and alignment our LPs expect. We review what worked, where we hesitated, and how we can sharpen our approach for the next opportunity.

At Motley Fool Ventures, due diligence is more than a stage in the funnel—it’s the foundation of our conviction. It’s how we move from signal to clarity, from insight to action, and ultimately, from process to partnership.

DISCLAIMER: This material is provided for informational and educational purposes only and should not be relied upon as legal, tax, or investment advice.  Investors should always consult their own advisors regarding any potential investment.