Startup due diligence

Startup due diligence helps you to make an informed investment decision based on the return potential and company-specific risks

Startups promise you as a venture capitalist high returns in exchange for high risks compared to traditional investments. It is therefore in your best interest to review the return potential and understand the risks specific to your target before making a final investment decision.

This approach will greatly enhance your ability to assess whether or not the risk-return profile of a venture capital investment is attractive to you. You will also know where the startup needs your support the most. A startup due diligence will provide you with this information.

As part of the due diligence process, information and assumptions made by the Startup are validated and company-specific risks are discovered and assessed

Our startup due diligence provides you with objective and independent transaction advice to help you make a well-informed investment decision. The due diligence process validates the information and assumptions provided by the startup and at the same time determines whether any relevant information is missing that could have a significant impact on the return potential or risk profile of the startup. Both the risk and return potential have an impact on the value of the start-up.

During the due diligence of the start-up, strengths, weaknesses, threats and opportunities are identified in the following six dimensions of the company:

  1. Market
  2. Product and service
  3. Business model
  4. Team
  5. Legal
  6. Financials

The topics covered in each dimension are outlined below.

1) Market due diligence

  • Market size and growth
  • Market trends
  • Regulations
  • Competitive intensity / market attractivity

2) Product and service due diligence

  • Product development and roadmap
  • Product-market-fit
  • Scalability in production and delivery
  • Unique selling proposition (USP)

3) Business model due diligence

  • Traction
  • Pricing
  • Unit economics
  • Go-to-market strategy

4) Team due diligence

  • Match of experience and skill set of founders and workforce
  • Network and experience of advisory board members

5) Legal due diligence

  • Incorporation documents
  • Shareholders’ agreement
  • Cap table
  • Subsidiaries
  • IP & trademark
  • Material contracts
  • Litigations

6) Financial due diligence

  • Financial performance
  • Financial status and health
  • Financial projections and assumptions
  • Valuation

The result of the startup due diligence provides you with an optimal basis for the investment decision and the start of the cooperation with the company

The result of the startup due diligence will make you

  1. aware of the company-specific risks involved
  2. informed about the strengths and weaknesses in all six dimensions
  3. know if the return/risk-ratio is attractive and you don’t overpay the deal
  4. understand where you can optimally support the startup

Price for startup due diligence

CHF 5'000

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