Due diligence is an essential element in fundraising processes, and can reveal important risks that otherwise be overlooked. It also provides an opportunity to show the professionalism and efficiency of a company. A well-organized and organized dataroom with the right documentation for their evaluation can be a significant factor in the final outcome of your investment.
Investors may investigate your organisation’s financials including legal documents, key individuals employees, contracts for employment and suppliers. They will also investigate the lawfulness of your intellectual property portfolio and might seek proof of ownership. If you’ve leased, contracted or licensed your IP instead of owning it the need to divulge this information to investors since it could affect the value of your business.
In the digital age news can be spread quickly and reputational damage can be permanent particularly for non-profit organizations. To avoid these risks fundraising due diligence must no longer be seen as a one-off process performed only on a single prospect. It should be a continuous, wide-ranging process that involves many potential investors.
For effective fundraising in fundraising due diligence, it must include research across a variety of publicly accessible online sources. The research should be compiled and presented in clear, understandable and complete reports that are easily reproducible. This is a demanding task that human teams usually can’t meet, however automated platforms provide the ideal solution. They can search millions of public data sources, disambiguate and cross-reference quickly. They can produce digestible, categorised reports that are then customised for the specific needs of each prospect.