Venture Investing:

Due Diligence

Due Diligence Worksheet

Evaluating a Start-Up Company for Venture Investing

By Indiaco

Venture Financing Funnel    

Venture Financing: Key Documents

 

Management Team

Rating

1

Previous experience (Include Bios)

 

2

Management team strengths

 

3

Functional areas of strength and weakness (Mktg, Dev., Fin.,Sales, etc)

 

4

Identified key functional areas that require immediate additions/changes

 

Rating: 1-10 (1 Lowest, 10 Highest)

Targeted Industry Segment

Rating

1

Addressable market size

 

2

Current competition and respective positioning

 

3

Possible new entrants to the market

 

4

Significant competitive advantage and/or differentiation

 

5

Market and adoption related risks

 

Rating: 1-10 (1 Lowest, 10 Highest)

 

 

Technology and Products

Rating

1

Patents pending

 

2

Architecture

 

3

Standards supported

 

4

Performance/scalability metrics

 

5

Current adoption level of technology

 

6

Review of development methodology and selected tools

 

7

12 month product strategy, feature prioritization and roadmap

 

8

Technology risks (techniques/processes, tools, hiring/people etc.)

 

Rating: 1-10 (1 Lowest, 10 Highest)

Marketing Plan

Rating

1

Addressable market size

 

2

Per cent of market capture

 

Rating: 1-10 (1 Lowest, 10 Highest)

 

 

Financials

Rating

1

Income Statement (for three years)

 

2

Sources and use document

 

3

Industry comparable's

 

4

Valuation

 

5

Capitalization table

 

6

Exit strategy

 

Rating: 1-10 (1 Lowest, 10 Highest)

 

 

Venture Investing

Venture Funding Stages

Warren Buffet's Investment Principles and Tips

Venture Acquisitions

Investment Opportunity Selection by Investors

Investment Evaluation Criteria

Business Plan: What  Every Investor Wants to Know

Business Plan DOs and DON'Ts

How Investors Read a Business Plan

Investor's Questions To Be Answered by the Business Plan

Due Diligence

Investigating a Startup and Its Management Team

Sample Due Diligence Request and Check List

10 Most Common IPR Mistakes During VC Due Diligence

Business Valuation

Venture Valuation and Keeping Your Share

Valuation Quantification Techniques

VC Valuation: Sample-cum-Worksheet

Structure the Deal

Ways of Realization of Financial Returns for Investors

Equity Investor's Compensation

Terms of Preferred Stock Issued to Venture Capitalists

Private Placements

Private Placement Memorandum

Private Placement of Convertible Stock: Sample Term Sheet

Terms and Conditions for Securities Offerings

Jokes

Unlucky VC Investor