There are a number of relatively common aspects of the due diligence process. In fact, these steps are so commonplace that many firms have ‘due diligence checklists’ that ensure that VCs taking all of the necessary steps in the process.

Ultimately, the due diligence considerations are typically segmented based upon each of the key strategic, operational and financial elements of a company. Each consideration is typically assessed through a combination of meeting with management, review of secondary research, and conversations with industry participants (e.g., customer, competitors, investors, experts). I intend to write a post on each due diligence consideration where I will discuss the due diligence process for that consideration as it relates to entrepreneurs.

Due diligence considerations:

• Business model and addressable market size
• Customer demand
• Competitive advantages
• Business development marketing plan
• Technology and product development
• Operations management & human resources
• Financial
• Legal

These considerations are addressed through a number of common activities:

• Customer calls
• Expert calls
• Partner calls
• Addressable market sizing
• Model review
• Competitive landscape assessment
• Management reference calls