Anyone who has watched a show like Shark Tank or Dragon’s Den is familiar with the concept. Investors research a company’s finances, legal documents, the most important people, customers suppliers, customers and before making an investment decision. Investors must also conduct due diligence on the business plan of a company and market position as well as growth projections.
When it comes to fundraising, due diligence is an essential process that aims to verify the information provided by a www.dataroompro.blog/virtual-data-room-sharefile-pros-and-cons potential donor. It typically involves rigorous assessments and checks that are conducted by a prospect development department or by a specially-trained team. The scope of the study can be extensive and it is crucial to clearly define the requirements that are most important for your organization.
The most common areas for inquiries are:
Financial Details – A comprehensive investigation of the donor’s background including their financial history. This typically covers the last ten years of their history including all assets, liabilities, and earnings information.
Technical Details Investors want to be aware of the technology you are using and how it will increase in future. They will also want to be aware of your client base as well as any contract information that might be relevant.
Other important areas to be considered include: