Due Diligence

The investigative process investors conduct before completing a funding round, examining a company's financials, legal structure, customer data, technology, and team to verify the claims made during pitching.

Due diligence can uncover issues that kill deals or reduce valuations. Founders who maintain clean records, accurate financials, and organised legal documents close rounds faster and at better terms.

A VC offers a term sheet and begins due diligence. They request 3 years of financial statements, customer contracts, cap table documents, and reference calls with your top customers. Clean and organised records mean the round closes in 6 weeks instead of 4 months.