How can you best document and present due diligence findings? (2024)

Before you start collecting and analyzing data, you need to define the scope of your due diligence, based on your investment thesis, criteria, and goals. What are the key questions you want to answer? What are the main areas you want to cover, such as market, product, team, financials, legal, and technical? How deep and broad do you want to go into each area? How much time and resources do you have to complete the due diligence? By defining the scope, you can prioritize the most important and relevant aspects of the startup, and avoid getting lost in irrelevant or redundant information.

Once you have defined the scope, you need to collect and organize the data that supports your due diligence. You can use various sources, such as interviews, surveys, documents, databases, online platforms, and third-party reports, to gather quantitative and qualitative information about the startup and its environment. You should also verify the accuracy and validity of the data, and cross-check it with multiple sources. To organize the data, you can use tools such as spreadsheets, databases, folders, cloud storage, and software applications, to store, sort, filter, and label the data according to the scope and structure of your due diligence.

The next step is to analyze the data and extract meaningful insights that answer your key questions and support your investment decision. You can use various methods, such as benchmarking, SWOT analysis, financial modeling, scenario analysis, and risk assessment, to evaluate the strengths, weaknesses, opportunities, and threats of the startup, and compare it with its competitors and market standards. You should also identify any gaps, assumptions, or uncertainties in the data, and how they affect your analysis. To analyze the data, you can use tools such as charts, graphs, tables, diagrams, and dashboards, to visualize, summarize, and highlight the key findings and metrics.

After analyzing the data, you need to synthesize the insights and formulate your conclusions and recommendations. You should focus on the most critical and relevant insights that support or challenge your investment thesis, criteria, and goals. You should also explain the rationale and evidence behind your conclusions and recommendations, and how they align with the startup's vision, mission, and values. To synthesize the insights, you can use tools such as frameworks, models, matrices, and scorecards, to organize, rank, and communicate the key factors and drivers that influence your investment decision.

The final step is to format the report and present your due diligence findings in a clear, concise, and compelling way. You should follow the best practices and standards of your industry, sector, and organization, and use a consistent and professional style, tone, and language. You should also structure the report according to the scope and audience of your due diligence, and use headings, subheadings, bullet points, and numbers, to make it easy to read and navigate. To format the report, you can use tools such as templates, guidelines, checklists, and examples, to ensure that you cover all the essential elements and details of your due diligence.

The last step is to share the report and present your due diligence findings to your team, your partners, and your stakeholders. You should tailor the report and the presentation to the needs and expectations of each audience, and highlight the most important and relevant points for each group. You should also be prepared to answer any questions, address any concerns, and provide any feedback or follow-up actions that may arise from the report and the presentation. To share the report, you can use tools such as emails, meetings, calls, webinars, and slides, to deliver, discuss, and document your due diligence findings.

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

Venture Capital

+ Follow

Thanks for your feedback

Your feedback is private. Like or react to bring the conversation to your network.