Anyone who has seen shows like Shark Tank or Dragon’s Den will be familiar with concept of due diligence. Investors study a company’s financials and legal documents, as well as key individuals, customers suppliers, customers and before making a decision on investment. Investors also conduct due diligence on the business plan of the company and market position as well as 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 usually involves rigorous evaluations and checks carried out by an applicant department or an expert team. The scope of your investigation could be extensive, so it’s important to clearly define which criteria are most important for your business.

The most common areas for inquiries are:

Financial Details – An in-depth review of the donor’s background including their financial history. This typically covers the past ten years which includes all liabilities, assets and earnings information.

Technical Details Investors should know the technology you use and how it will scale in the future. Investors should also know about your customers Clicking Here and any pertinent contract details.

Other areas of inquiry might include: