How Entrepreneurs Can Grow Their Companies By Thinking Like Investors
Before an angel investor or venture capital firm will invest in a startup, the business has to prove its viability through a lengthy review process called due diligence. Startups often prepare tens to hundreds of pages of documentation and give presentations to investors, advisors and lawyers on every aspect of their business, from the broad vision and strategy all the way to specific financial projections, in-depth market analysis and more. And while the due diligence process can be intensive, Yasin Abbak says it's as valuable for the startup as it is for potential investors. "Even if you never plan to raise money, due diligence preparations and documentation can help you build your business more efficiently," he says.