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GLOSSARY

Due diligence

Investor investigation before finalizing investment.

What is reviewed

Financials, cap table, contracts, IP ownership, team backgrounds, customer references, legal matters, and metrics verification.

Timeline

Angel/Seed: 1-4 weeks. Series A+: 4-8 weeks. Faster with clean data room and organized documents.

Common pitfalls

Messy or missing documents; inconsistent metrics across materials; surprises that should have been disclosed upfront.

FAQs

Related terms

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Lead investorTerm sheet