How to Ensure You are Investor Ready?
I’m always on the hunt for relevant info and I loved this - one of the best articles I’ve seen on this topic for a while. Here are a few paragraphs as a taster...
Due diligence process
Due diligence is the investor’s investigation into the startup company, to make an informed decision before committing to the investment.
A venture capital firm, family office or other professional investor will usually have a due diligence checklist setting out the issues to provide information about, and the legal documents to be provided or created, before they will invest.
What about particularly secret or sensitive information?
If your company has particularly secret or sensitive information, there are ways to provide additional protection, including limited access, access only after completion of the investment, or simply knowing that the information exists as a secret may be sufficient.
Due Diligence protection
Once due diligence is complete, the company and investors need a copy of all due diligence materials saved as proof of what was provided. The startup is likely to have made promises about the company, known as warranties. The due diligence material is the startup’s proof that it provided all relevant information to investors.
Pretty valuable stuff, I’m sure you’ll agree! Why not check out the whole article here and share your thoughts with me afterwards: call +1(202) 516-7990 or email me at [email protected].
Talk soon,