n this insightful video, I discuss the due diligence process in the context of startup fundraising. I offer guidance for startups when potential investors indicate a need to carry out due diligence but don’t take the initiative to kick off the process.
I stress the importance of understanding who the investor relies on for their due diligence, particularly if they are an individual investor lacking pertinent expertise. In these cases, it might be a family member or friend who might not possess the required background to comprehensively evaluate the startup’s potential.
I encourage startups to pose tough questions to unveil the true capability of the investor or their contact to conduct meaningful due diligence. They should ponder whether the person has relevant knowledge about the startup’s industry or alternative investments.
I suggest reframing the situation by questioning the necessity for exhaustive due diligence for the proposed amount of investment. Often, this can prompt investors to simplify their requests and proceed with the investment.
This video offers a behind-the-scenes look at how to expedite the fundraising process by efficiently handling potential investors’ due diligence requests.
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For a comprehensive guide, head to CallingTheCapital.com for a free download of “Calling The Capital: 20 Ways to Incorporate Urgency Into Your Capital Raise,” or grab it from Amazon.
Hall T. MartIn: https://www.linkedin.com/in/halltmartin/
Ten Capital Network: https://tencapital.group/