Startup Funding Espresso -- The Diligence Process
Startup Boards -- Diligence Process Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. For startup investing, it\u2019s important to have a diligence process. In most cases, you\u2019ll sign a term sheet with funding contingent on passing due diligence. It helps to tell the company about your diligence process, such as what documents are required, what steps you perform, and how long it typically takes. This helps eliminate the \u201chow is it going?\u201d calls.\xa0 The process may vary from deal to deal based on the risks associated with each deal.\xa0 Write out a list of your concerns and look for answers both in the documents and through discussions with the CEO. High-level questions to ask include the following: Product validation -- does the product work? Market validation -- will someone pay for it? Team validation -- is the team sufficient for the job? Funding validation -- how much funding will be needed to reach the exit? Exit validation -- will someone buy the company being built? 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 .