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DDB Venture Capital partner with founders who demonstrate strong market potential, sound business fundamentals, and a scalable vision. As part of our investment process, we conduct due diligence to assess your startup’s financial health, competitive positioning, and overall viability.

 

Below is a detailed checklist to help you prepare for our due diligence review. Ensuring that all required information is provided will help streamline the process and facilitate a more efficient investment decision.

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1. Company Overview & Legal Structure

✅ Company Information & Registration

• Legal name, registered business address, and incorporation details

• Certificate of Incorporation and Business License(s)

• Tax Identification Number (TIN), VAT registration (if applicable)

✅ Corporate Governance & Ownership

• Current cap table (shareholder breakdown, equity ownership structure)

• Board of Directors and governance structure

• Copies of bylaws, operating agreements, and shareholder agreements

✅ Intellectual Property (IP) & Legal Protections

• List of registered patents, trademarks, copyrights, or pending applications

• IP ownership agreements, licensing deals, and any disputes related to IP

• Non-disclosure agreements (NDAs) signed with employees, contractors, or partners

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2. Market & Competitive Landscape

✅ Market Opportunity & Industry Overview

• Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and Serviceable Obtainable Market (SOM) analysis

• Industry trends, market growth projections, and key challenges

✅ Competitive Analysis & Positioning

• Detailed competitor benchmarking (features, pricing, customer base)

• Differentiation strategy and unique value proposition

• Barriers to entry and potential threats from new competitors

✅ Customer Acquisition & Go-to-Market Strategy

• Sales channels (B2B, B2C, direct sales, partnerships, online, offline)

• Customer acquisition cost (CAC), lifetime value (LTV), and conversion metrics

• Growth and expansion strategy (domestic vs. international markets)

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3. Financial Information & Performance

✅ Historical Financials & Revenue Model

• Audited or unaudited financial statements for the last 2-3 years (if available)

• Breakdown of revenue streams (product sales, SaaS subscriptions, licensing, etc.)

• Current cash position and burn rate

✅ Financial Projections & Forecasting

• 3-5 year financial projections, including revenue, cost structure, and margins

• Assumptions used for revenue growth, cost of goods sold (COGS), and operational expenses

• Break-even analysis and profitability timeline

✅ Existing Funding & Investor History

• List of previous funding rounds, amounts raised, and valuation history

• Investor cap table, convertible notes, SAFE agreements, or equity grants

• Loan agreements, debt obligations, or credit facilities

✅ Unit Economics & Key Performance Indicators (KPIs)

• Customer acquisition cost (CAC) vs. lifetime value (LTV)

• Gross margin, net margin, and EBITDA analysis

• Churn rate, revenue retention, and average revenue per user (ARPU)

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4. Product & Technology

✅ Product Overview & Roadmap

• Product demo, screenshots, or prototype (if applicable)

• Core features and differentiators from competitors

• Development roadmap and upcoming milestones

✅ Technology & Scalability

• Overview of tech stack, backend infrastructure, and software architecture

• Scalability and performance plans (handling high user loads, cloud computing, etc.)

• Product security measures, encryption, and data privacy policies

✅ Intellectual Property & Technical Risks

• Licensing agreements for third-party technologies

• Open-source software usage and compliance risks

• Data protection measures (GDPR, HIPAA, or industry-specific regulations)

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5. Team, Talent & Leadership

✅ Founders & Executive Team

• Resumes or LinkedIn profiles of key executives

• Founders’ equity ownership and vesting schedules

• Team structure and leadership roles

✅ Employee Compensation & Incentives

• Stock option plans, ESOPs, and employee equity grants

• Compensation breakdown for key executives and employees

• Key hires planned for the next 12–24 months

✅ Company Culture & HR Policies

• Company mission, core values, and work culture overview

• Policies on diversity, equity, and inclusion (DEI)

• Attrition rate and employee retention strategies

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6. Legal & Compliance

✅ Regulatory Approvals & Compliance

• Industry-specific licenses or permits required to operate

• Compliance with labor laws, tax regulations, and corporate governance standards

• Insurance policies (general liability, cyber risk, directors & officers insurance)

✅ Contracts & Agreements

• Copies of customer contracts, vendor agreements, partnerships, and joint ventures

• Standard Terms of Service (TOS) and privacy policies for customers/users

• Lease agreements or ownership documents for office spaces

✅ Litigation History & Legal Risks

• Any pending lawsuits, arbitration, or regulatory investigations

• Employment disputes, contractual conflicts, or past litigation records

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7. Customers & Business Traction

✅ Customer & Revenue Growth

• Current customer base, segmentation, and revenue contribution by segment

• YoY growth rates, new customer acquisition trends, and churn rate

✅ Customer Satisfaction & Retention

• Net Promoter Score (NPS) or customer satisfaction metrics

• Testimonials, case studies, or references from existing clients

✅ Partnerships & Strategic Alliances

• Existing partnerships with distributors, retailers, or ecosystem players

• Affiliate programs, reseller agreements, or channel partnerships

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8. Funding Requirements & Use of Funds

✅ Investment Ask & Use of Capital

• Amount of capital sought in the current round

• Planned allocation of funds (e.g., product development, marketing, hiring)

• Expected runway and time until next funding round

✅ Exit Strategy & Long-term Vision

• Potential exit opportunities (IPO, acquisition, secondary market sale)

• Preferred investor rights, liquidation preferences, and expected returns

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9. Risk Management & Contingency Planning

✅ Market Risks & Competitive Threats

• Economic factors that could impact revenue or business operations

• Emerging competitors or disruptive technologies that may pose risks

✅ Operational & Financial Risks

• Dependency on key suppliers, manufacturers, or partners

• Currency exchange risks for international businesses

• Contingency plans for economic downturns or unexpected challenges

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Final Steps

Once all required information is gathered, submit your documents to the DDB Venture Capital investment team. Our due diligence process is designed to ensure transparency, efficiency, and strategic alignment.

We appreciate your time and effort in preparing for this process and look forward to exploring a potential partnership! 

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This refined checklist provides a structured and comprehensive guide for founders to navigate our due diligence process effectively. 

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Quick read: Key Components of an Effective AI & Fintech Pitch Deck

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