Every company now leaves a digital footprint, from web traffic patterns to digital brand strength and social media sentiment. Digital Due Diligence has become critical in uncovering hidden signals and assessing investment opportunities. This is where the conversation started at The Avantgard Group – Private Investor Summit in London.
On April 23, we attended The Avantgard Group – Private Investor Summit, at the Lansdowne Club in London, an exclusive, invite-only gathering of leading investors and family offices focused on forward-looking insights and investment opportunities.
Among the summit's highlights was the presentation by our Chief Strategist, Attila Tóth, who explored how Digital Due Diligence (DDD) is reshaping risk assessment and uncovering hidden value in modern investments.
One of the most surprising insights Attila shared was that 8 out of 10 investors uncover critical information about a company only after they’ve already committed capital. These post-deployment discoveries often surface hidden risks or reveal missed opportunities, both of which can have a substantial financial impact. The cost of not knowing is simply too high.
Investors often leave value on the table not because the data isn’t accessible, but because they don’t know where to look. According to Attila, the key lies in tapping into two essential data streams: market data and company data.
From the market side, a key question is: how many people are actively seeking a solution to the problem the company addresses? If the answer is "hundreds", the business may require significant investment to build awareness. If it’s "millions", a deeper analysis is needed that prompts further questions: is the market already saturated with competitors, or, if not, why hasn’t anyone else entered?
On the company side, one of the most telling metrics is Customer Acquisition Cost (CAC), especially when compared to industry benchmarks. A high CAC raises the question: what are the underlying cost drivers? If these drivers aren't being measured, that signals a gap in operational visibility. Conversely, if the CAC appears really low, it’s worth asking whether the figure is statistically representative or is it skewed by factors such as the founder’s personal network.
In either scenario, understanding these dynamics early can reshape the investment thesis and help avoid costly assumptions.
In a digital-first world, the traditional due diligence, centered on financial, legal, and operational factors, must be complemented by an additional layer to provide a full picture: with Digital Due Diligence.
The DDD approach enhances the conventional Due Diligence model by capturing real-time digital signals from the market and the company, translating those signals into quantifiable risks and revenue potential, and offering clearer visibility into future performance, before the capital is committed.
It’s not a replacement for traditional due diligence, but a powerful extension of it.
As the nature of risk and opportunity shifts in a digital-first world, incorporating Digital Due Diligence is becoming a practical necessity. Not just for better decisions today, but for building lasting conviction in the investments of tomorrow.
We thank all the speakers, guests, and partners who made this summit a success.
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