A slideshow explaining the thinking process behind conducting due diligence in venture capital https://www.rockyourfinance.com/

2. Background
Return on Capital Employed
Operating Profit Margin
Leverage
Interest Cover
Free Cash Flow
Valuation
ESG
Thematic Fit
Diversified Business
Management Track Record
Quantitative
Qualitative

3. Background

4. Background

5. Team
1. What first-hand experience does
the founding team have?
2. What expertise is present in the
technical team?
3. What is their mission?
4. What is the compensation
structure?
Clouds Dirt

6. Tech/Product
1. Does it have IP protection?
2. How is the tech/product better?
• Cheaper
• Faster
• Higher quality
• New
3. What value does it add?
Clouds Dirt

7. TAM
1. What is the estimated market size?
(Bottom-Up & Top-Down Analysis)
2. Is there a growth trend?
3. What is the CAGR?
4. Industry headwinds & tailwinds?
Clouds Dirt
Industry Incumbent
Reports

8. Traction
1. Is the market in push or pull mode?
2. What are the CAC, LTV and LTV:CAC
ratio?
3. What is the customers’ feedback?
Clouds Dirt
Sales figures
Agreement letters
Customer focus groups

9. Trenches
1. Who are the key competitors in the space?
2. Does the company possess some kind of
moat?
• Network Effects
• Superior tech & IP
• User/Data lock-in
• Brand
• Economies of Scale
Clouds Dirt
Competitors’ Reports
(if public)

10. Financials & Valuation
1. Does the company have revenue?
2. What are the revenue streams?
3. What is the burn rate?
4. Is the company cash flow positive?
5. What is the pre-money valuation?
6. What funding round is the company at?
7. Who are the other investors?
8. What is the exit potential?
Clouds Dirt
Company Financials
Cap Table

11. Thank you
Suggestions & questions welcome
owenzammit.com
Owen Zammit