Glossary · Deal process
Due diligence
The homework investors do before they send money: checking finances, legal docs, customers, and team. Think of it as a trust-building audit, not a personal attack.
Related: Term sheet · Investment memo · Pitch deck
A bit more nuance▾
- Emerging-market companies sometimes have messier records — proactive data rooms help.
- Due diligence can surface deal-breakers early, which saves everyone time.
Go deeper▾
Discussion questions▾
- What is the weakest paper trail in your company today?
- If an investor called three customers, what would they hear?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.