The duration of due diligence for a startup is typically 2-4 weeks. It takes 1-2 weeks for an investor to collect required information from the startup. Then it takes about 1 additional week for the investor to prepare a report after receiving all documents. Due diligence should not last longer than 30 days otherwise the investor may lose interest. Startups are advised to begin preparing for due diligence as early as possible, ideally before negotiations begin, to have their documentation and legal affairs in order.

1. THE
DURATION
OF DUE
DILIGENCE
H O W T O P R E P A R E
F O R D U E D I L I G E N C E

2. How long does it
take to do
due diligence?
The duration highly depends on the
responsiveness and organization of the start-up.
Usually, all the required information is collected
within one to two weeks.
It takes about one week after the submission of
all required documents to the preparation of the
report by the investor.
The entire due diligence process usually takes
from two to four weeks.
Due diligence shouldn’t last more than 30 days.
In other case, the investor may see you as
inefficient and lose interest in your company.

3. When to start
to prepare
for due diligence?
The plain answer is: the sooner the better.
In reality, it often happens that the start-up only
addresses the legal counsel after starting the
dialog with the investor. In this case, the
preparation takes place in parallel with the
negotiation.
The good practice is to appeal to consultants to
do the internal due diligence, correct deficiencies,
and prepare the missing documents in advance.
The worst-case scenario is to let the investor‘s
consultants discover all the issues.