Due diligence for startups

Signs

Here’s some of my favorite articles on due diligence, all obviously written from painful experience.

Rick Segal writes about The Due Diligence Dipsey Doodle. He’s great at providing concrete examples of what he’s talking about, and emphasizing ‘obvious’ points (like documenting everything) that everyone theoretically knows, but are still commonly ignored in practice. He’s also got an older post covering the actual list his firms goes through at Kicking the tires: A due diligence checklist.

Nivi and Naval at VentureHacks try to answer How much diligence should we do before we sign a term sheet? I like their relentless focus on giving entrepreneurs tools to put together good deals, with good coverage of what can go wrong to back up their advice.

Suzanne Dingwall Williams is a lawyer with a lot of experience working with startups. She gives some cautionary advice on what can go wrong with the disclosure process in Selling the startup: Due diligence disasters.

Furqan Narziri has some useful tips on the process in Due diligence: What to expect. I like his suggestion of using Sharepoint to manage the documents being worked on, especially since that ties in with a lot of what I’ve been working on.

Finally, Mark Peter Davis has an ambitious series  covering the whole process of raising capital, and is just starting on the due diligence phase in Sharing your cap table. I’m really interested in following the whole series, he’s doing a great job.

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