Due Diligence
Also called DD
The investigation an investor runs before wiring money: checking the financials, legal structure, cap table, contracts, tech, and references to confirm the story holds up.
Why it matters
Clean, organized diligence signals a well-run company and speeds a round to close; a messy one spooks investors and kills momentum. Keeping a data room tidy from early on pays off when it counts.
For example
Before wiring the Series A, the lead's team spends three weeks checking the cap table, customer contracts, code ownership, and calling five reference customers.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Raising your first round, part of the Starting Up hub.
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