How to Perform Diligence in a Group

How to Perform Diligence in a Group

July 28, 2022 by investor

Startup Boards — How to Perform Diligence in a Group

In performing due diligence in a group of investors, it helps to assign roles and responsibilities.

There are three phases to diligence:

1. Documentation diligence
2. Team diligence
3. Domain diligence

The lead investor should take the three steps and assign each of these to one person or group.

Assign the first team to review the key documents and write a short report on what the company has and if there are any discrepancies with the submitted documents.

Assign the second group to review the startup team. Meet with the team, assess their skills, and write a short report.  In most cases, you’ve heard the CEO pitch, but it’s important to understand the CEO’s skills set, including what is there and what is not.  

Assign the third group to research the competition. The group should check the positioning of the company in the marketplace.

Identify the value proposition and how well it resonates with customers. 

Look at their pricing compared to the competition.

Check the industry to see the conditions in which it will grow or decline.

Remember to write down in one document the findings to share with others.

The lead brings the group together to review the results and check any red flags. 

Shared documents and folders make this step easier.

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.


Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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   

Please follow, share, and leave a review.

Music courtesy of Bensound.



Copyright (c) 2022, Hall Martin and investorconnect.org. All rights reserved.

Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit 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 for the basis of investment decisions.

Tags: