Proper Due Diligence

Saravanan RathakrishnanSaravanan Rathakrishnan • 2nd • 2ndSenior Associate at RHTLaw Asia LLP | Specializing in Funds, M&A and Venture Capital | Legal500 Rising Star (Investment Funds) | Structuring High-Impact Private Equity/Debt & Venture Capital Investment FundsSenior Associate at RHTLaw Asia LLP | Specializing in Funds, M&A and Venture Capital | Legal500 Rising Star (Investment Funds) | Structuring High-Impact Private Equity/Debt & Venture Capital Investment Funds

Due diligence is more than just a formality—it’s the key to making informed startup investments that protect your capital and future returns.


Many investors dive into exciting startup opportunities without fully evaluating the risks.


But neglecting a thorough review of key areas can expose you to unforeseen legal and business pitfalls.


What often happens is that investors overlook crucial elements in the due diligence process, focusing too much on the product and less on underlying risks.


This can lead to missteps that affect both their investment and the startup's future.


The truth is, conducting proper due diligence helps you uncover potential issues early on, providing clarity on the risks and helping you make better investment decisions.


Are you conducting thorough due diligence before making startup investments?


Here’s a checklist of key areas investors should focus on when evaluating a potential startup investment: