Due Diligence Preparation
The prompt
$18
Why this works
Organising the data room by due diligence workstream (financial, legal, technical, product, team, market) rather than by document type makes it easier for investor teams to work in parallel rather than serially. Pre-drafting management presentations ensures the narrative around sensitive areas is prepared and consistent, rather than improvised in the first investor call. The red flag identification section is the most valuable output — it's better to know your vulnerabilities before investors discover them than to be caught unprepared.
Risks & review
Due diligence data rooms contain highly sensitive information — ensure NDA is signed before providing data room access, and use tiered access so early-stage investors see less than late-stage investors who have signed term sheets. Any information provided in due diligence that turns out to be materially inaccurate creates representations and warranties liability. Have your legal counsel review the data room contents before sharing, and ensure all financial information has been reviewed by your CFO or auditor.