Due Diligence
Definition
Due Diligence: Due diligence is the investigation process investors conduct before finalizing an investment. It typically covers financials, legal matters, technology, team backgrounds, customer references, and market analysis. Thorough preparation for due diligence can significantly speed up fundraising.
Example Usage
“We spent three weeks in due diligence, providing financial models, customer contracts, and code audits.”
Common Misconceptions
Related Terms
Term Sheet
A term sheet is a non-binding document outlining the key terms of a proposed investment, including valuation, investment amount, board composition, li...
Data Room
A data room is a secure online repository where companies share confidential documents with potential investors, acquirers, or partners during due dil...
Series A
Series A is typically the first significant venture capital funding round after seed, usually ranging from $5M to $20M. At this stage, startups are ex...
Explore More Resources
Browse Tools
Discover 100+ vetted tools for every stage of your startup journey
Explore all toolsBuild Your Stack
Take our personalized quiz to get tool recommendations for your startup
Start the checklistRecommended Reading
Curated books to help you learn, grow, and succeed as a founder
View book recommendationsListen & Learn
Top podcasts covering startups, product, growth, and entrepreneurship
Discover podcastsHelp us improve this definition
See something that could be clearer or more accurate? Let us know.