Due Diligence – the Thorough Approach

Due Diligence – the Thorough Approach

April 10, 2020 by investor

Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

There are several approaches to Due Diligence. The most common is the “Thorough Approach” in which you review each aspect of the business and focus on the top items.

Main areas to cover in due diligence are:

Market
What’s the market size — Total, Serviceable, Beachhead?
How fast is it growing?

Product
What is the state of the product both technical and market?
Does it solve a burning need or add general value?
What actually has been developed?
What remains to be developed to go to market?
Who has used the product and what do they say about it?  

Legal
What contracts are in place?
Are there any lawsuits?

Intellectual Property
What patents have been filed/approved and when?
What trade secrets do they have?

Financials
What revenues have come in?
What are pending?
What is the burn rate?

Capitalization
What is the capitalization structure?
Who are the major players?

People
Key players and their roles and responsibilities?
What contracts are in place with each?

Of course there’s a checklist for each area to complete as well, but this gives an overview.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group


____________________________________________________

Copyright (c) 2018, Hall Martin and investorconnect.org. All rights reserved.

NOTE: Investor Connect is a program under the Texas Open Angel Network which is a 501(c3) non-profit dedicated to the education around startup funding. Hall Martin is the principal contact, and may be reached at http://www.investorconnect.org/contact.
Music: http://www.bensound.com.

Disclaimer:
Hall T. Martin is the Director of Investor Connect which is 501c3 non-profit dedicated to the education of investors for early stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Tags: