Anyone who has seen a show such as Shark Tank or Dragon’s Den is familiar with the concept of due diligence. Investors will study a business financials, legal documents and key people, suppliers and customers to make a decision about investing. They will also perform due diligence on the company’s business model, its market position and growth projections.
When it concerns fundraising, due diligence is a critical procedure that is designed to verify the information provided by a prospective donor. It usually involves thorough assessments and checks that are carried out by a prospect development department or by a specially-trained team. The scope of your investigation may be broad, therefore it’s essential to identify which criteria are most important for your business.
The most frequently asked inquiries are:
Financial Details – A thorough study of the background of the donor including their financial background. This will usually cover the 10 years prior to https://dataroompro.blog/what-is-a-capital-call/ the date of application and includes all assets as well as liabilities, earnings, and data.
Technical Information – Investors need to know the technology that your product uses, and the way it will scale in the future. They’ll also want be aware of your client base and any contract information that may be relevant.
Other important areas of inquiry include: