I hear from many founders what types of due diligence we look for when evaluating companies. So before we dive into a term sheet, we send out a high-level DD list that encompasses mainly business points that help us understand growth, customers, margin, and general business economics. Here is the list for your viewing pleasure.
Latest company overview presentation or pitch deck
Historical monthly financial statements in excel (straight out of an accounting system is acceptable)
Monthly financial projections for 2022/2023 in excel (and beyond, if available)
Historical monthly revenue by customer
Any unit economics data/analysis that the Company has available (e.g., margin analysis, data on CAC/LTV/churn)
Current sales pipeline with opportunity stages, percentage probability, and projected revenue/ARR value by the target
Current cap table and summary of funding history to date
This information, followed by a management call + demo, gives us all the information we need to be able to work independently and come to an investment decision.
