Due Dilligence

Due Dilligence

https://www.meetup.com/Seattle-Angel/events/271263808/

-- @todo Can we get a Checklist? -- @todo What About a ENT "Canvas" for Fund Raising -- @todo Canvas All the Things! -- @todo ENT should have a Prepared One-Sheet + Link to Doc-Set Magic

Books / Links

SAC YouTube Channel, Some Recordings have Books "Angels" by Jason...something "Calacanis?"

• https://www.seriesseed.com/
• https://www.ycombinator.com/documents/
• https://www.amazon.com/Angel-Invest-Technology-Startups-Timeless-Investor/dp/0062560700
• https://www.amazon.com/Angel-Investing-Making-Having-Startups/dp/1118858255
• https://www.amazon.com/Startup-Checklist-Scalable-High-Growth-Business/dp/111916379X
• https://bothsidesofthetable.com/what-all-entrepreneurs-need-to-know-about-prorata-rights-e5883fd21f80

Pre-Seed?

Angels & Syndicates

• FFF, Heros, Angels
• DD Focus: TAM, Simple Company (simple cap-table), Good Team
  • TAM: >$5B
  • Proven Team: 18+ mo together? All Key Players on Cap-Table
  • No Surprises!!
  • Buying the Team more; INT is buying BEFORE the "Pivot"

Seed (eg: Priced)

Angels and Syndicates & Seed

• Serious Money
• DD Focus: Product/Market Fit ("PMF"), Unit Economics,
  • CAC: Customer Acuisition Cost
  • ASP: Average Sales Price
  • ICP: Ideal Client Profile
  • CLTV: Customer Life Time Value
  • Stickyness: IP,

Series A

Seed and Early Stage Venture Funds

• DD Focus: Scale
  • Documented & PRoven Scale Metrics
  • Control of Churn, not a "leaky bucket", doing client exit interviews? Active Surveys?

  • =50 Clients at ASP

  • Margins Good/Real
  • Eye on Next Target, Customer Segment, Growth Area
  • Capital Stack?

Always Do

• Thesis: Bio-Pharma, FinSaaS, etc.
• Ability to write this check
• Ability to say "no" or "not yet" ** Not Yet is a big deal
• Passion for Service

Table Stakes for ENT

Must haves for getting started

• Identify Lead -- "big dogs", "whos in charge", audience research
• Organized Documents
  • Legal: Articls, Cap-Table, etc, etc, keep it clean and tidy
  • Pitch Deck
  • Financials: P&L, Balanace Sheet, Projection
  • Team Details: Current Resumes, Future Hires, Options Details
  • Team is on LinkedIn, AngelList, ProSeeder, Gust, CrunchBase, PitchBook, etc, etc