Startup Funding Espresso -- Diligence Process - Documentation
Startup Boards -- Diligence Process - Documentation Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Before investing in a startup, it\u2019s important to review the diligence documents, so you understand the business.\xa0 There are three phases to diligence: Documentation diligence Team diligence Domain diligence For Documentation diligence, ask the startup for a list of key documents.\xa0 If it\u2019s not in one folder, ask them to put it into a Google Drive or Box account.\xa0\xa0 It\u2019s common for startups to continually add to their diligence box, so keeping it in one place helps. The key documents include:\xa0 Entity filings and articles of incorporation Patent filings Income statement Balance sheet statement 3-5 year financial projections Cap table These are the documents you will review.\xa0 Other documents related to the business, such as lawsuits, by-product breakdowns, and by-customer breakdowns, should be requested if appropriate.\xa0 Read each document and check to see if it matches what you understood about the deal.\xa0\xa0 Note any differences and ask for clarification. You may need to sign a Non Disclosure Agreement (NDA) for sensitive information.\xa0\xa0 It\u2019s standard practice to do so in due diligence as the information should be kept confidential even without an NDA in place.\xa0\xa0\xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .