The Peer Due Diligence and Selection Model

At Village Capital, we believe entrepreneurs closest to the problem have the best insights.

Through a structured framework and facilitated peer due diligence, we create space for honest conversations that surface real organizational challenges. In our programs, founders rank one another based on these insights to help determine capital allocation. We’ve run this model 70+ times, with evidence it reaches entrepreneurs who might otherwise be overlooked by traditional finance. We continue refining the approach as the ecosystem evolves.

The Story Behind Our Method

When Village Capital was founded in 2009, the dominant investment model concentrated decision-making power among a small group of investors, often disconnected from the realities founders faced on the ground. We tested a different idea: what if entrepreneurs themselves played a central role in deciding where capital should go?

This led to the creation of Village Capital’s peer due diligence and selection model, first deployed through our inaugural fund, Village Capital I (VCI).

Founders participate in structured feedback, diligence, and ranking processes – bringing real operating insight into investment decisions. This approach demonstrated that capital could be deployed more equitably without sacrificing financial discipline, showing that founders’ lived experience could meaningfully inform investment decisions.