Anyone who has watched a show like Shark Tank or Dragon’s Den will https://dataroompro.blog/our-pick-of-best-automation-tools-for-deal-flow-management/ be familiar with the concept of due diligence. Investors conduct research on a company finances, legal documents as well as key individuals and suppliers, as well as customers in order to make a decision on investing. Investors should also conduct due diligence on a company’s business plan, market position, and growth projections.
When it concerns fundraising due diligence is a vital procedure that seeks to confirm the information provided by a potential donor. It typically involves thorough evaluations and checks performed either by the prospect department or by a specialist team. The scope of the investigation can be extensive and it is vital to clearly define the factors that are most important for your company.
The most popular areas for inquiries are:
Financial Details – A detailed investigation of the donor’s background including their financial history. This will usually cover the 10 years prior to the date of application and includes all assets such as liabilities, assets, and earnings data.
Technical Details Investors want to know the technology your product uses and how it is expected to increase in future. Investors should also know about your customers and any pertinent contract details.
Other areas of inquiry may include:
