Startups raising venture capital - Due Diligence

You have your plan, the venture capital partners presented. It was well received and will have a term sheet. You have your major deal points negotiated and are ready for investment. Now, the VC wants to start with due diligence.

Wait a minute ... what was all that the presentation and discussion with academic partners and specialists? Was not it due diligence? Well, sort of. It was through diligence to ensure that the business model and technology were worthyInvestment. Now they want to ensure that your company is.

Term post-sheet to ensure due diligence of your company at a detailed level, to ensure that you do not have any skeletons in the corporate closet. The venture capital firm wants to ensure that they do not open themselves up to patent infringement litigation, employee litigation, tax or scandals.

The VC will usually want some form of the following information:

Corporate organization and history - in fact,Her book minutes plus partnership or joint venture.

Management and employee relations - the CVs of the management, descriptions of key personnel, organizational changes or proposed changes in management

Intellectual property - the list of patents, utility models, trademarks, copyrights, etc. and all claims and litigation by or against the Company in respect of patents and patent infringement.

Finance and AccountingQuestions - Financial statements, preferably audited, in the last three to five years, and copies of all documents from previous financings, stock purchase agreements, shareholders agreements, etc.

Legal and tax issues - all claims and litigation by or against the company, including all matters relating to income or employment taxes.

Acquisition, sale or reorganization - all documentation surrounding the purchase, sale or reorganization in the pastYears.

Each venture capital firm did not need its own list of due diligence. Very early in the process, one might ask the company for the due diligence list, allowing you to jump on, like what the company can get. Often the list will be further sections on product and sales strategy plans, competitions, public relations and R & D include

From the moment you receive the term sheet for financing day six to eight weeks, if not more. If you receive financial support required by a VCYou do not want to get up instead, because you are trying to find documents or make copies.

My Links : sons of anarchy