Anyone who has watched shows like Shark Tank or Dragon’s Den is familiar with the concept. Investors research a company’s financials, legal documents as well as key individuals and suppliers, as well as customers in order to decide whether or not they are investing. They should also conduct due diligence on a business’s strategy, market position and growth projections.
Due diligence is an essential process in fundraising. It’s designed to verify the information that donors provide. It usually involves rigorous checks and assessments that are conducted by an individual department or a team of Clicking Here experts. The scope of the study could be a lot of different and it is essential to identify the criteria that are most significant for your organization.
The most common areas of inquiry are:
Financial Details – A thorough review of the background of the prospective donor including their financial history. This will typically cover the past 10 years including all assets, liabilities, and earnings information.
Technical Details – Investors will want to know what technology you are using and how it will increase in future. Investors will also want to learn about your clientele and any relevant contract information.
Other important areas of inquiry might include: