What is the due diligence process?
Part of Seedrs’s due diligence process is conducted before the campaign even launches on the platform. The investment team ensures that everything submitted in the campaign is presented to investors in a way that is fair, clear and not misleading. This involves requesting supporting documents for any factual statements – for example, if a business claims to have 10,000 users of it’s service then Seedrs needs to see evidence that supports this claim.
The remainder of the due diligence takes place after a campaign has successfully funded. This varies from business to business but generally includes: reviewing the corporate structure of the company and the details of existing shareholders, any outstanding debt, IP ownership and key existing contracts the company may have entered into.