How do investors do due diligence on independent sponsors & searchers prior to investing?

by an investor from Harvard University

3 years ago

I saw someone pose this question on Twitter today and I thought it would make for an interesting discussion here on Searchfunder. 

Investors: Assuming you find the deal attractive, how do you do due diligence on new searchers or sponsors? Reference checks / background checks / etc? 

Searchers and sponsors: What experiences have you had with prosepective investors doing DD on you (rather than on your deal) that made you more or less interested to work with them?

6 likes
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19 comments

searcher from University of Virginia-Darden - Darden School of Business

I own a SaaS business that's totally focused on background checks for private market deals. We cross-reference multiple databases looking for employment, legal issues, bankruptcy, and criminal records. Single report is $67 and you can get it in minutes with just name, email, and city. https://www.usetract.com/Risk-Investigation

1 week ago | like reply | 0 likes

investor from University of Maryland at College Park

I find the same aspects challenging so thanks for the post

3 years ago | like reply | 1 like

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