Due Diligence and Fundraising Processes

Anyone who has seen shows like Shark Tank or Dragon’s Den is familiar with the concept. Investors will research a business’ finances, legal papers and key people suppliers, customers and other key individuals to make a decision about investing. They must also do due diligence on the company’s business model, market position and growth projections.

Due diligence is a crucial process in fundraising. It’s a way to verify the information that donors provide. It typically involves thorough checks and assessments that are performed either by an applicant department or an expert team. The scope of the investigation could be a lot of different and it is essential to identify the requirements that are most important for your organization.

The most frequently used areas of inquiry include:

Financial Details – A detailed study of the background of the donor including their financial history. This usually covers due diligence and fundraising processes the last ten years, and includes all assets such as liabilities, assets, and earnings information.

Technical Information – Investors need to know what technology your product uses, and the way it will scale in the future. They’ll also want know about your client base and any contract information that might be relevant.

Other important areas to consider include: