Do you remember wishing as a kid that money grew on trees? I’m sure every startup founder wishes this at some point in their journey, even if it’s just to get a good night’s sleep.
Then reality sets in. The money is quickly drying up, and you realise that in order to grow or scale your business, you’re going to need an injection of cash. Without it, your chances of survival are slim to none.
Raising capital can be daunting for anyone, particularly a startup founder who has not been exposed to the funding process before.
You know your idea is good, but will somebody else be willing to invest in your dream?
Assuming you have an idea worth backing, don’t screw it up by not being investor ready and prepared for due diligence.
Due diligence is a critical step in the investment process. It is the process by which the investor gets to know your business. It’s also an opportunity for you to get to know the investor and make sure the investment is right for your business. The quality of due diligence says a lot about the quality of the business. Being prepared for due diligence can:
- build confidence and trust in your company
- increase your chances of receiving an offer
- expedite the due diligence and investment process, and
- increase the value of your business.
In addition, given it can take weeks, months or even years (in the case of large-scale acquisitions) to prepare fully for due diligence, it’s never too early to get started.
If you’re not prepared for due diligence when the time comes, you may miss your one shot of investment or weaken your negotiating position resulting in a lower valuation and/or a protracted transaction process significantly delaying that much-needed injection of cash.
Can your company risk not being ready for due diligence? Would it survive without investment or wither on the vine?
Our Investor Readiness Masterclass includes a due diligence checklist and implementation plan to help you prepare for due diligence. By answering some questions, it will be tailored to the stage of your company and the type of funding you are seeking. Contact us for more details.
Resources and related topics:
- Complete our FREE ‘Are you investor ready?’ questionnaire to find out your startup’s overall investor readiness. We will also provide you with a free checklist to help get you investor ready.
- Blog: What does it mean to be investor ready?
- Investor Readiness Masterclass. This course is designed to get you investor ready and prepared for due diligence quickly. Contact us for more details.