Due Diligence and Fundraising Processes

Anyone who has watched a show like Shark Tank or Dragon’s Den is familiar with the concept. Investors research a company’s finances and legal documents, as well as customers, key individuals suppliers, customers, and before making a decision about investing. Investors must also conduct due diligence on the business plan of the company, market position, and growth projections.

When it involves fundraising due diligence is an essential procedure that is designed to verify the information provided by a prospective donor. It typically involves thorough examinations and checks that are conducted by an applicant department or a specialist team. The scope of the study could be quite broad and it is crucial to establish the criteria that are the most crucial for your organization.

The most popular areas for inquiries include:

Financial Details – An in-depth investigation of the donor’s background including their financial background. This will typically include the past ten years which includes all assets, liabilities and earnings data.

Technical Information Investors want to be aware of the technology your product uses and how it is expected to scale in the future. They’ll also need to know about your client base as well as any contract information that could be relevant.

Other areas of inquiry may include:

Deal Flow Management