Startup Investment Checklist

Taking an informed approach to investing in startups is crucial for minimizing risks and maximizing potential returns. This checklist has been created to assist with the identification and evaluation of promising startup investments. As you embark on the due diligence process, please carefully review and check each item accordingly.

Understanding the Business Model

Research company's business model and ongoing operations.
Understand the company's revenue generation mechanism.
Assess the scalability and potential profitability of the business model.
Check the company's pricing strategy.
Evaluate the company's unique value proposition.

Assessing the Market

Investigate the size and growth potential of the target market.
Identify the company's direct and indirect competitors.
Assess the impact of current market trends on the company.
Evaluate barriers to entry in the market space.
Consider the level of product or service demand and supply in the market.

Legal and Regulatory Compliance

Review the company's legal structure and ensure compliance.
Check for any pending or past legal issues or disputes.
Evaluate the company's adherence to industry regulations and standards.
Assess the company's intellectual property rights and protections.
Verify compliance with local, state, and federal tax regulations.

Financial Due Diligence

Review the company's financial statements (income statement, balance sheet, cash flow statement).
Assess the company's financial health and stability.
Examine any outstanding debts or liabilities.
Verify the accuracy of financial projections and forecasts.
Evaluate the company's cash flow management and liquidity.

Operational Assessment

Investigate the efficiency of the company's operations.
Assess the quality of the company's products or services.
Review the company's supply chain and distribution channels.
Evaluate the effectiveness of the company's marketing and sales strategies.
Check for any critical dependencies or risks in the company's operations.

Prepared By: [YOUR NAME]