Anyone who has seen a show such as Shark Tank or Dragon’s Den will be familiar with the concept of due diligence. Investors will research a business financial statements, legal documents and other important individuals and suppliers, as well as customers in order to make a decision about investing. Investors also conduct due diligence on the business plan of a company and market position as well as growth projections.

When it comes to fundraising, due diligence is an essential procedure that is designed to verify the information provided by a prospective donor. It typically involves rigorous reviews and assessments that are carried out by a prospect development department or a specialized team. The scope of the investigation could be quite broad and it is vital to establish the criteria that are the most crucial for your business.

The most popular areas for inquiries are:

Financial Details – A thorough analysis of the prospective donor’s background, including their financial history. This typically covers the past ten years and include all assets, liabilities, and earnings data.

Technical Information – Investors will want to be aware of the technology that your product is based on and how it will increase in future. They’ll also need to be aware of your client base and any contract information that could be relevant.

Other important areas to be considered include:

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