Anyone who has seen a show like Shark Tank or Dragon’s Den is familiar with the concept. Investors will research a business financial statements, legal documents, key individuals suppliers, customers and other key individuals in order to make a decision on investing. Investors must also conduct due diligence on the business plan of a company and market position as well as growth projections.
When it involves fundraising due diligence is a critical method that is intended to verify the information provided by a prospective donor. It usually involves rigorous evaluations and checks carried out by an applicant department or a specialist team. The scope of the study could be a lot of different and it is crucial to establish the criteria that are most significant for your organization.
The most frequent areas for inquiries include:
Financial Details – A thorough analysis of the background of a potential donor including their financial background. This usually covers the last ten years, and includes all assets as well as liabilities and earnings data.
Technical Details – Investors want to know about the technology your product utilizes, as well as the way it will scale in the future. Investors should also know about your customers and any pertinent contract information.
Other important areas to be considered include: