How to sail through the due diligence process
While receiving a term sheet is an important milestone in any company’s quest to raise capital, the hard work doesn’t end there. Successfully navigating the due diligence process that follows is crucial to determining whether you’ll receive the capital you’re looking for, so it’s important to get it right. Due diligence is the process investors use to assess the risks associated with investing in your business, while ensuring that your pitch is realistic. Unfortunately, if you make a mistake during the diligence process, the results could be dire. At a minimum, you’ll have wasted precious time and resources, while distracting your senior management team. Far worse, your business might be in jeopardy of getting a lower valuation than you expected or not receiving funding at all. You could even take a hit to your reputation, which might scare off other investors. To avoid those scenarios, and sail through due diligence with ease, we recommend following these steps: Be pr