Getting Your Digital Health Venture Ready for Due Diligence: Checklist

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We’ve seen too many early stage ventures and their teams unprepared for the due diligence process, whether to be acquired or to get funded. It’s been a painful process for many of the companies we meet and it takes tons of CEO and executive time. It involves a rigorous review of your operations, products, technology stack, sales, customers, team/management and financial condition. It also takes you away from your customers, running your business and placing you at risk with your stakeholders.
To help you here, we went through several due diligence investigations by investors ourselves when funding our previous companies. We prepared a checklist of 15 items you might expect. There is a wide range of investor asks and focus areas. While you may not need to cover the waterfront with all the items on this list, it should help prepare you for the basics. Basics that are likely to be covered in your conversations with disciplined angel and venture funding groups.

The Due Diligence List and Questions includes these topics:

  1. Organization and Good Standing

  2. Financial Reports, Tax Returns

  3. Business Plan & Valuation

  4. Indebtedness

  5. Human Resources

  6. Professional Services

  7. Organization Information

  8. Contingent Liabilities

  9. Contracts, Agreements and Other Arrangements

  10. Proprietary Rights

  11. Plant, Property and Equipment

  12. Insurance

  13. Product Development/Management

  14. Sales/Marketing

  15. Operations

Your Stage: Preparing for Investor Discovery

Before you start your discussions with investors or business partners, consider staging. Realizing greater value for your business is like staging your real estate for sale. When you want buyer to invest in your business, a major clean-up is required before opening the doors to potential investors.

We’ve been fortunate to help many technology companies, including some of our own, prepare for investor and partner discussion. To help you, we created this actionable, stoplight dashboard tool. It sets the stage for preparing your enterprise, team, processes and technologies for more favorable terms and in more favorable light.