Anyone who has seen a show such as Shark Tank or Dragon’s Den is familiar with the concept of due diligence. Investors research a company’s finances, legal documents, important individuals, customers suppliers, customers and before making a decision about investing. They also do due diligence on the business’s strategy, market position and growth projections.
Due diligence is a vital process when it comes to fundraising. It’s designed to verify information provided by potential donors. It usually involves rigorous tests and assessments that are carried out by a prospect department or an expert team. The scope of your inquiry can be vast, so it’s essential to identify which criteria are most important for your organization.
The most common areas of inquiry are:
Financial Details – A detailed study of the background of the donor including their financial history. This will usually cover the past ten years and include all assets as well as liabilities, earnings, and data.
Technical Information Investors want to know the technology your product uses and how it will expand in the future. They will also want to know about your client base as well as any contract information that may be relevant.
Other areas of inquiry might include:
https://dataroompro.blog/virtual-data-room-sharefile-pros-and-cons/
