What is Due Diligence?
As defined by Investopedia, "Due Diligence is an investigation, audit, or review performed to confirm facts or details of a matter under consideration" (Investopedia, 2021). When a startup claims that they have conducted due diligence of their company, that means that the entrepreneur has provided financial statements since formation, detailed sales and revenues, listed all outstanding debts and notes, list of patents, and any other special terms or letters that were issued to any shareholder prior to seeking investment or merger.
The following Due Diligence Checklist is what RGVAN uses when deciding to invest in a startup as of 10/17/2021. Whether you are an investor looking to become a part of a network or an entrepreneur seeking funding, knowing what is required for a due diligence is necessary when conducting business.