Before a venture capitalist forks over cash to invest in your business, he or she has to get comfortable with your business and the management team.
As part of getting comfortable with your company, the venture capitalist will conduct business due diligence. This business due diligence often includes the following:
- A review of the market for the company’s product
- A background check on the founders and key management team
- A review of the historical financial statements
- Analysis of the company’s competition
- Discussions with the company’s key customers
- An analysis of financial projections for the business
- A review of any holes in the management team
- Customer checks
Click here to view a sample Due Diligence Checklist. By reviewing and preparing the documents on this list, you can help expedite closing a deal.