How to Speed Up Fundraising Due Diligence

As a founder of a start-up looking for funding, you should be ready to provide investors in equity like venture capital companies and angel funding with the data they require for due diligence when fundraising. This is the process by which interested parties investigate a business in order to confirm important data and metrics that meet investment requirements, and investigate possible risks before making an investing decision.

In the process of due diligence, VCs will ask for documents related to your business operations, financials, taxation, legal and compliance. Due diligence can be speeded up and delays will be reduced when these documents are readily available. A VDR can allow you to store and access these documents quickly, manage permissions, and ensure that only those who need to access www.eurodataroom.com/how-can-an-online-data-room-benefit-your-business/ them are able to access them.

In addition to the VDR in addition, there are other tools you can utilize to accelerate the due diligence process. You can set up a system to automatically upload important files to an organized folder. This will cut down on the amount of work you need to do, as you won’t need to manually collect and upload documents. It’s also useful to create a timeline of when you will need to provide each piece of documentation so that the VC knows when you’re ready to provide it.

Training your gift officers in due diligence in fundraising and gift acceptance policies is another effective method to ensure that you are ready for the due diligence process. This could include preparing the list of triggers that, if met will require a thorough risk rubric. Examples are international prospects, crimes or scandals known to the public, and solicitations that exceed a specific dollar amount, such as name-based donations.