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Team Due Diligence

1 min read No one wants to invest in a startup that is doomed to fail; enter: Team Due Diligence. “What we hope ever to do with ease, we must learn first to do with diligence.” – Samuel Johnson Performing the proper Team Due Diligence is an essential part of the investing process. The most critical factor in that process is understanding the startup’s team. Since a startup has only a developing product and perhaps some intellectual property, digging into the team is an excellent indicator of its potential success. It can be your number one key to understanding if the business is worth your investment. Here are some things to look for when doing your team due diligence: Team Resumes. Look at the resumes of those who are prospected to join the team when funding becomes available. The CEO should know who they are planning to bring on once they have the funding. Domain Knowledge. Who has the expertise, and how current is it? Complementary Skills. Do they have a team member with sales skills? Is there someone who is going to develop the product? Is there a member with people management skills who can grow the team? How long has the team worked together? Ideally, the team has some experience working with each other. The more time they’ve had together, the better. Read more: http://staging.startupfundingespresso.com/education/ Hall T. Martin is the founder and CEO of the TEN Capital Network.TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

Technical Due Diligence

1 min read Technical Due Diligence (TDD) is a detailed evaluation of a company’s technical side, including both existing software and hardware products and those in development. Potential investors need to gather detailed information about a prospective company to highlight any potential risks associated with their investment. While the Technical Due Diligence process may seem intimidating to some small business owners initially, it is, in fact, a routine step. If efficiently planned and executed, a TDD should be able to answer investor questions in easy-to-understand terms. Whether you are a potential investor, or a startup new to the process, the following article provides an insightful take on making the process work. When embarking on the TDD process, investors typically want to know about 4 major areas: Strategy: Does the company and its product(s) fit within the investor’s overall growth objectives? Does the company’s own strategy match up with the investors’ strategy? Quality: Are there quality issues with the company’s product that will require fixing? If product development or fixes are needed, what are the expected costs? Growth:  Is the company or its product poised for growth? What roadblocks would hinder growth in terms of labor, manufacturing, infrastructure, and/or development? Can the product be scaled? Stability:  Are the company founders and their employees in it for the long haul? Are their processes organized and well-documented? Are there contingency plans and redundancies in case of an unforeseen event? Read more: http://staging.startupfundingespresso.com/education/ Hall T. Martin is the founder and CEO of the TEN Capital Network.TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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