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7 tips to help you navigate due diligence with investors

*This is an extract from UPSCALE, a new book on scaling published this week by Tech Nation, the UK network for ambitious tech entrepreneurs

Megumi Ikeda, GM and MD at Hearst Ventures Europe, has these 7 tips on navigating due diligence with investors

The due diligence process undertaken by investors in the run-up to fundraising is not for the fainthearted. From copies of leases to customer contracts, and shareholder minutes to employee equity schemes, entrepreneurs are required to produce a blizzard of paperwork, as well as set up a data room. Your legal advisors – and always opt for venture capital specialists, by the way – will guide you through this documentary and evidentiary maze.

However, from an investor’s perspective, some of the most important parts of the due diligence process aren’t to be found buried deep in the data or contractual sub-clauses. After all, investing in a company means working closely with its leadership team for a period of years, and neither party wants to be stuck in a dysfunctional marriage. So, here are some of the things to bear in mind, according to Hearst Ventures Europe’s Megumi Ikeda:...