Every Step You Take, LPs Will Be Watching You –

People have been fudging their resumes for years, even though it can lead to embarrassment. Well, here’s a reason to make sure that your resume is 100% accurate: It may be scrutinized by an ex-cop hired by a potential limited partner when you go out to raise your next fund.

After years of doing due diligence on entrepreneurs, general partners are now getting a taste of what it feels like to be under the microscope. A growing number of LPs are hiring so-called business intelligence firms to perform hard-nosed “investigative” due diligence on venture capital firms-with some surprising results.

Outfits like Intelex Ltd. of Greenwich, Conn., Kroll Inc. of New York, and Decision Strategies LLC, which has five U.S. offices, are in the business of digging up crucial information that can help investors make more-informed decisions. They employ international databases, document searches and good old-fashioned legwork conducted by investigators around the globe to uncover everything from criminal records to unsavory business dealings.

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