Anyone who has seen a show such as Shark Tank or Dragon’s Den is familiar with the concept. Investors will study a business financials, legal documents and other important individuals suppliers, customers and other key individuals to make a choice about investing. Investors should also conduct due diligence on the business plan of the company and market position as well as growth projections.
When it is about fundraising due diligence is a critical procedure that is designed to verify the information provided by a prospective donor. It usually involves thorough reviews and assessments that are performed by a prospect development department or a team of specialists. The scope of the investigation could be quite broad, and it is important to clearly define the requirements that are most important for your business.
The most frequent areas for inquiries include:
Financial Details – A thorough review of the background of the potential donor and financial history. This usually covers the past ten years and include all assets as well as liabilities and earnings data.
Technical Information Investors will want to know the technology your product citrix sharefile virtual data room reviews uses and how it is expected to grow in the near future. They will also want to know about your client base as well as any contract information that might be relevant.
Other important areas of inquiry might include:
