In this insightful video, we provide a comprehensive breakdown of the due diligence process for various types of investors: first-time angel investors, venture capital (VC) funds, and family offices.
We point out that many first-time angel investors may not fully grasp the due diligence process. To address this, we suggest guiding the investor through the contents of a diligence box, such as entity filings or patent filings. This approach effectively resolves all outstanding queries and completes the due diligence process, potentially leading to an investment.
When dealing with VC funds, the process is more organized and can span weeks. We advise startups to understand and facilitate the VC’s process as much as possible, inquiring about the process, the responsible analyst, and any required information.
Lastly, we discuss family offices—entities with liquid assets exceeding $100 million. These offices often have departments dedicated to different types of investments. The diligence process is usually managed by family members with business acumen or outsourced to experts. Upholding their brand reputation is vital, so they ensure that their investments are meticulously vetted and align with their brand’s values.
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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/