Summary: When Entrepreneurs pursue getting funding from Investors, there is a due diligence process that is performed by the potential investors on behalf of their stakeholders. However, many entrepreneurs are not aware of the extent of the detailed investigation and validation of every aspect of your business. (http://traffic.libsyn.com/fgcastgain/Due_diligence_collage.jpg) The Finance for Startups podcast series delivers a repurposed episode from Chris Benjamin, the Rogue CFO, from his Podomatic platform podcast series called "The Rogue CFO's Expert Guide to Launch a Startup." As you will hear in this audio episode, the due diligence goes beyond just checking on cash flow and revenue projections. The extent that investors dig in goes all the way from investigating the market and potential product or service feasibility, as well as competitive advantage and your management team as individuals. Being pro-active during this process is highly recommended. Verification, validation, proof, credit reports, background checks, legal liabilities -- these all march to the goal of reducing the risk of the Investor organization. Also, Chris recommends that you should do some due diligence on your own to investigate the investors. Copyright (c) 2012, Chris Benjamin Consulting, LLC. and Matrix Solutions Corporation. All rights reserved.
