How do accredited investors conduct due diligence for venture-stage investments? Can they quickly evaluate the relative risks? Once identified, are the investment risks acceptable? In this White Paper, Carofin identifies nine “leaps of faith” to consider in early-stage investment. Has the entrepreneurlaunched a start-up before? Is the company’s product simply an improvement or a disruptive technology? Is a product available and are customers purchasing it? What motivates customers to buy the product? Is the management team assembled? Are distribution channels, with a sales pipeline, in place? Is the business ready to scale, and what is the competition? These questions provide investors with a comprehensive and consistent means for evaluating venture capital investments.
Evaluating Venture Investments