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Our Due Diligence Process

Our Due Diligence Process. Experienced leadership A HUGE market A valuable technology Proof that someone will actually buy the product or technology A quick and clear path to market A quick and clear path to exit

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Our Due Diligence Process

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  1. Our Due Diligence Process The Impact Angel GroupReal Impact. Real Returns.

  2. Experienced leadership • A HUGE market • A valuable technology • Proof that someone will actually buy the product or technology • A quick and clear path to market • A quick and clear path to exit • The ability for investors to realize a 5 – 10X return on their investment What are we looking for? The Impact Angel GroupReal Impact. Real Returns.

  3. Has due diligence been done by others? • Qualified reference checkers in place? • How much are we investing? • What is the timeline? How much due diligence? The Impact Angel GroupReal Impact. Real Returns.

  4. Our Process The Impact Angel GroupReal Impact. Real Returns.

  5. Executive Summary Template and Gust.com applications accepted • Typos? • Delivered on time? • Understandable? • Are they responsive? The Executive Summary The Impact Angel GroupReal Impact. Real Returns.

  6. Answer initial questions from executive summary • Get to know the entrepreneur • Can they communicate effectively? • Can you work with each other? The First Meeting The Impact Angel GroupReal Impact. Real Returns.

  7. Second meeting checklist • Pursue more sensitive information • Deeper management assessment: • How do they handle feedback? • Have they delivered as promised? • Are they responsive? The Second Meeting The Impact Angel GroupReal Impact. Real Returns.

  8. Is it logical? • Does the math add up? • What are their assumptions? • Have they done research to validate their assumptions? • Are there similar exits? Valuation The Impact Angel GroupReal Impact. Real Returns.

  9. Reference Checks • Customer Calls • Investment Documentation Review • Venture Board Review • Document Review • Criminal Background Checks Other Steps The Impact Angel GroupReal Impact. Real Returns.

  10. BUT…. The Impact Angel GroupReal Impact. Real Returns.

  11. TEAM The Impact Angel GroupReal Impact. Real Returns.

  12. Qualified Reference Checkers • Personal and Professional • Try to get one away from reference Reference Checks The Impact Angel GroupReal Impact. Real Returns.

  13. If you were a mentor to or manager of this person what suggestions would you give this person to perform even better in the future? • What surprises will we find (good and potentially not so good) when we start working with this person? • Can you tell me the one thing this person did that significantly impacted the organization they were working with? • Now tell me about a project that didn't go so well, or one where this person had to overcome some barriers. What were the problems, and how did they handle them? Reference Questions: The Impact Angel GroupReal Impact. Real Returns.

  14. Pairin.com • Be an Advisor • Board Member for a Day Other Team Tools: The Impact Angel GroupReal Impact. Real Returns.

  15. Are they prepared? • How do they handle feedback? • Can they control the meeting? • How do they interact with the team? • Are they focused in meeting? • Do they have a focused strategy? Team Success Indicators The Impact Angel GroupReal Impact. Real Returns.

  16. Market understanding • Awareness of competition • Clear vision? • Realistic milestones? Team Success Indicators The Impact Angel GroupReal Impact. Real Returns.

  17. Ask an expert • Ask the market • Become a user • Trust others, but not too much • TRUST YOUR GUT Top Due Diligence Tips: The Impact Angel GroupReal Impact. Real Returns.

  18. Confidentiality • Only share when interest is expressed • Ask for permission • Non-reliance • Disclaimer • Verbally communicate • Slander/Libel • Avoid email • Share opinion with others, but be careful Managing Due Diligence: The Impact Angel GroupReal Impact. Real Returns.

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