When analyzing a new private investment opportunity, you may ask yourself “where do I begin?” While gut feeling, personal interests, pre-existing relationships, and capital availability are all important factors, it is best practice to honor a standard, objective approach to your assessment framework which adds clarity to the benefits, risks, and red flags of any opportunity crossing your plate. This article marks the beginning of a multi-post series on due diligence.
We begin by taking an elevated look at a simple and effective framework you can apply to keep your bias in check and to break down most venture investment opportunities into more easily digestible indicators. Future posts will spotlight select sections from the list below to explore deeper strategies to evaluate these facets of a business.
Although the audience focus for these posts is primarily tailored toward the private investor, founders may gain keen insights on how to better prepare themselves for due diligence by exploring the investor lens in this process.
The following building blocks offer a straightforward approach to analyzing a new private investment opportunity:
Applying these analyses individually and then bundling the key conclusions together to provide a holistic impression helps an investor to see the forest through the trees. The following sections represent other sample assessments that can supplement a core framework as detailed above. Apply occasionally as desired, and know that other factors can always be included.
When analyzing a new private investment opportunity, you may ask yourself “where do I begin?” While gut feeling, personal interests, pre-existing relationships, and capital availability are all important factors, it is best practice to honor a standard, objective approach to your assessment framework which adds clarity to the benefits, risks, and red flags of any opportunity crossing your plate. This article marks the beginning of a multi-post series on due diligence.
We begin by taking an elevated look at a simple and effective framework you can apply to keep your bias in check and to break down most venture investment opportunities into more easily digestible indicators. Future posts will spotlight select sections from the list below to explore deeper strategies to evaluate these facets of a business.
Although the audience focus for these posts is primarily tailored toward the private investor, founders may gain keen insights on how to better prepare themselves for due diligence by exploring the investor lens in this process.
The following building blocks offer a straightforward approach to analyzing a new private investment opportunity:
Applying these analyses individually and then bundling the key conclusions together to provide a holistic impression helps an investor to see the forest through the trees. The following sections represent other sample assessments that can supplement a core framework as detailed above. Apply occasionally as desired, and know that other factors can always be included.