Fundraising
Due diligence
Due diligence is the investigation an investor or acquirer conducts before completing a transaction, reviewing a company's financial, legal, tax and operational records. Findings commonly affect price, structure and timing, or end the transaction.
In plain terms: The buyer checking that everything you said is true and everything is in order.
Why it matters
Almost none of it concerns the product. It concerns whether the company owns what it claims and filed what it should — cap table accuracy, IP assignments, tax filings including any historic Form 5472, and good standing in every state.
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