According to the research article, venture capital due diligence can offer real value to startups in several ways, even if they are not ultimately invested in. First, the due diligence process can provide valuable feedback and coaching to startups. VCs are experts in evaluating businesses, and their feedback can help startups identify areas for improvement. For example, VCs may provide feedback on a startup's business model, financial projections, or marketing strategy. This feedback can be invaluable for startups that are looking to improve their chances of success. Second, the due diligence process can help startups signal their quality to other investors. The fact that a startup has been through the due diligence process of a reputable VC firm can be a positive signal to other investors. This is because it suggests that the startup has been vetted by a qualified investor and is considered to be a promising investment opportunity. This can make it easier for startups to raise capital from other sources.

The research was based on a comprehensive analysis of over 2,000 startups that were applying for venture capital funding. The authors specifically mention a two-year time lapse to measure the impact of the due diligence process on the startups' performance. This extended timeframe helps to ensure that the observed improvements in fundraising were actually caused by the due diligence process, rather than by other factors. The fact that the study was conducted by researchers at reputable universities ( University of Chicago, Booth School of Business and Kellogg School of Management at Northwestern University ) further strengthens the credibility of the findings. Universities are known for their rigorous research methods, and the involvement of these institutions suggests that the study was well-designed and executed.