Business & Economic Development – Funding & Tax Credits – Innovation Growth Side Car Fund

Due Diligence Requirements

Short Form Angel Financing for Early/Seed Stage Companies



Essential Documents  
Investment Memorandum Investment Memo
Term Sheet Standard with management rights, ROFRs,
Corporate Documents  
Incorporation Docs Standard
Bylaws Standard
Business Plan 20 – 30 pgs max
Corporate Deck Investor Deck (most recent)
Board of Directors list Relevance to the business/Investor seat
Terms of Reference Positions held and for what period of time?
Minutes of Meetings Major resolutions, extraordinary expenses
Employment/Contractor Agreements Employees as contractors; independence from all other income sources
New Hires/HR Plan  
Current Patents filed; length of term; licensed or owned; agreements and payment structures; ties to inventor; options for assignment if licensed
In Process Geographies, process vs method
Strategy wrap around strategy or targeted; govt regulatory issues
Unique Features/Value Proposition  Spelled out, layman’s language
Development Road map Timeline to product launch/commercial? Lines up with financing? focused development –not too many irons in the fire
Comparables to market  How does this beat the current Products/services in the market?
Business Model/Sales + Marketing  
Sales Strategy  Including pricing, COGS, new products on-lining
Sales YTD  
Sales Forecast  Realistic projections, comparables, time to profitability
Marketing Strategy Targeted at customer
Current Customers/Partners  
Supplier/Vendor Agreements  Review supplier agreements for manufacturing – ensure fee for service or, if investors, no special rights
PO's or Verifiable sales orders  Calls to customers to confirm
Competitive analysis  Global or geographic; who; how big;
Cash Balance and Financials YTD  
Projections and Assumptions - 3-5yrs  
Cap Table including ESOP  
Shareholders Agreement (if any)  

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