What Isn’t Being Said in Due Diligence

What Isn’t Being Said in Due Diligence

May 18, 2020 by investor

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

In due diligence, what isn’t being said or shared is as important as what is.

When a startup pitches their idea, you should be skeptical of founders that don’t mention potential risks or discuss their experience in the industry or their traction.

Here are other key items the investor should look for:

Focus on what needs to be done and what risks exist in the deal.

Understand if the startup is offering a pain killer or a vitamin.

Verify the market size and growth rates actually reflect the market the team is pursuing.

Check the financial projections not so much for predictability of numbers, but rather for the startups’ understanding of their business.

Diligence on the founding team including industry experience, commitment to the startup and no criminal records.


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.
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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.

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