Fundraising homework is a vital part of boosting capital for virtually any start-up. It involves researching the docs and data a start-up seems to have provided throughout their investment pitch. A well-managed and organized due diligence preparation is key to winning trader confidence. Shareholders are generally mindful and are not likely to invest their money without finding proof of the claims of a medical during their presentation. A well-prepared startup displays that they are serious about their business.

The depth of the due diligence process as well as the number of docs required may differ by level and market. A Series A round will be needing more in-depth documentation than an angel or seed round. In general, a well-prepared international will have the majority of the proof already in place, especially if they are really transparent with their entrepreneur network and regularly talk about company improvements and info over time.

Shareholders will want to measure the company’s legal standing, including a thorough overview of contracts and agreements. They will also want to see the startup’s intellectual property portfolio and ensure that they are the legal owners of all assets. When a startup is definitely leasing or licensing their IP, this will be disclosed to investors as it should impact the company’s revenue.

Fundraisers may wish to review surprise acceptance packages, particularly if you will find any “trigger” clauses ~ ie the ones that would require additional homework, such as foreign prospects, doubtful sources of prosperity, or known crimes or scandals. They will want to ensure that the institution has clear, constant risk rubrics for donor sales and treat processing.