FUNDABLE STARTUPS
Startup Due Diligence: Best Practices & Toolkit
80% of startups fail due diligence, delaying the fundraise by 3 months. Learn in this class what (best practices) and how (toolkit) to succeed in your diligence journey. This class is released in phases.
2 hrs, 120 slides, 20+ templates
$299 Launch Price: $219
Startup Due Diligence: Best Practices & Toolkit
Professional investors conduct due diligence on startups before writing an investment check. But 75%-80% of startups fail due diligence. In the best case, this delays fundraising by three months. But in the worst case, the investors back out and choose not to invest at all.
Most founders are surprised at the volume of work required in diligence. Most guides on startup due diligence only focus on a checklist of diligence tasks -- basically what to look at. Almost none provide founders or investors with tools to expedite or optimize the diligence process -- which is how to conduct the diligence.
That's where our due diligence best practices and toolkit class comes in. As a startup coach, I've helped dozens of startups prepare for and pass the diligence process. As an investor with Band of Angels, I've also reviewed dozens of diligence responses from founders -- and found serious errors in over 80% of the content.
This comprehensive course on startup due diligence includes about two dozen tools to streamline the diligence process. Several key highlighted tools include:
- Diligence response tracker (a master index!)
- Cap table (with ISOs, NSOs, RSUs, RSAs, warrants, vesting & fully diluted shares + convertibles)
- 5-year multi-scenario, bottom-up, monthly financial model
- QSBS self-attestation
- Fundraising journey: past, present & future growth
- Exit analysis (M&A, IPO)
- Top customers
With our class and toolkit, you'll save time, money and headaches while increasing your chances of clearing due diligence!
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Building a successful startup requires many skills. Our training packages bundle multiple topics into a single purchase to provide introductory, core or advanced training.
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Founders who don't need breadth and only want the due diligence best practices and toolkit can buy this course à la carte and receive full access to all topics below.
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This course is included in our Premium Training tier.
Due Diligence Basics
- What is due diligence?
- Why is diligence important?
- Where is diligence done?
- Who drives diligence?
Diligence and the Startup Journey
- When is diligence done?
- Diligence for small / angel fundraises (up to ~$500K)
- Diligence for larger fundraises
- Diligence for Mergers & Acquisitions (M&A).
Components of Due Diligence
- Fundraising: docs related to the pitch & the deal
- Financial: docs where numbers take center stage
- Legal: docs where signatures, filings & risk are key
- Technical: docs full of geeky / nerdy stuff
- Commercial: docs about running the core business
The Importance of Due Diligence
- 75%-80% of deals die in diligence
- The need to proactively prepare
- Diligence burdens, signals, and impact
Due Diligence Costs
- Legal docs: founders pay for all diligence costs
- Diligence workload by financing round
- Typical diligence process
- Preparation reduces legal fees by $20K-$30K
Real-World Due Diligence Examples
- 10+ stories (good, bad, & ugly) of actual diligence
Due Diligence Summary
- Diligence basics, components, and keys
Due Diligence Toolkit
- Diligence framework: master index, tracking, data room
- Fundraising: pitch deck, exec summary, investor interest, funding journey (past, present, future), exit analysis, etc.
- Financial: cap table, future option grants, 5-year financial model, QSBS attestation, disclosures, financial infra, etc.
- Legal: legal infrastructure, legal review topics, org chart, core team members, etc.
- Technical: technical review topics, etc.
- Commercial: sales pipeline, top customers, partner pipeline, top partners, etc.
Startup Resources for Every Budget
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Get access to the full course for just $299. Introductory price: $219!
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