The right expert on one call can change a diligence conclusion

An expert bench is a set of people with deep knowledge in your focus areas - operators, engineers, clinicians, lawyers - who can help check claims quickly. It is built before it is needed and treated with respect.

9 min read · Level 5

The point

I think experts are most useful when asked the narrow question an investor cannot answer, not the broad one they should answer themselves. 'How long does a hospital take to buy this?' is a question for an expert; 'should I invest?' is not, and asking it wastes the relationship.

What is it?

Most investors cannot personally judge every technical, regulatory or market claim. An expert bench fills that gap.

Type of expert Helps with Former operators unit economics, sales cycles, hiring in an industry Senior engineers architecture, technical debt, AI claims Domain specialists clinical, regulatory or scientific claims Buyers and customers whether the product solves a real problem Lawyers and accountants structure, contracts, tax and accounting quality

How to build it:

Note useful people you meet in each focus area Ask portfolio founders who they trust Offer something in return - introductions, advice, or paying for time Keep a simple list with expertise, contact and last conversation

Rules for using it:

Protect company confidentiality - share only what the founder has allowed Check for conflicts - an expert who works for a competitor should not see sensitive details Ask specific questions, not 'what do you think of this company?'

Why does an investor care?

Because diligence quality depends on asking the right person the right question. A thirty-minute call with a hospital procurement manager can reveal more about a health-tech sales cycle than weeks of reading.

Experts also make investors more useful to founders after investing.

This is educational information, not investment, securities or financial advice. Rules differ by country and change — get advice from a qualified professional in your jurisdiction before acting.

Educational, not personalised financial advice. Nothing in the Investor Academy is a recommendation to buy, sell or hold anything — what is right for you depends on your own circumstances and the rules where you live.

Sources: U.S. SEC - Insider trading; UK FCA - Market abuse

Example

One expert call.

A company claims its software can be sold to hospitals in three months. The investor calls a former hospital procurement director from their bench.

Question: 'How long does a hospital typically take to buy new clinical software of this price?' Answer: 'Nine to eighteen months, usually with an information security review and a pilot.'

The investor recalculates the company's cash needs using a twelve-month sales cycle and asks the founder how the plan accounts for it.

The common mistake

Looking for experts only once a deal is live, or sharing confidential company information with experts who have conflicts.

How it works

Step 1: Map your focus areas

List the kinds of expertise your deals most often need.

Step 2: Collect experts before you need them

Record useful people as you meet them.

Step 3: Respect their time

Offer value in return or pay for their time where appropriate.

Step 4: Use them carefully

Ask specific questions, protect confidentiality and check conflicts.

When to use this

When your deals regularly involve claims outside your own expertise.

When not to use it

Do not share non-public company information with experts without permission, and be careful about sharing material non-public information about public companies.

How investors actually did it

A recurring pattern: expert networks and compliance

Expert network firms serving institutional investors operate compliance procedures to avoid transmission of confidential or material non-public information, following regulatory enforcement actions in insider trading cases involving expert consultations.

Expert conversations are valuable and carry confidentiality obligations that should be taken seriously.

Do this now

List three experts you could call about your main focus area
Identify one area where you have no one to call

Create a free account to read the rest and apply it to your own investing.

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