Due diligence in the age of social distancing
Due diligence is an important step when making an investment. Here’s how we handle the complex task and help investors remotely.
This article was originally published on April 9, 2020 on the madewithlove blog.
A big part of closing a new investment round is the technical due diligence report that informs all parties involved of the current state of technology and the engineering team. Usually, a contracted team arrives to interview and analyze a codebase, determine weaknesses, and create a briefing that communicates their findings. At madewithlove, we’ve been remotely auditing companies for the last couple of years. We want to address some myths we’ve encountered along the way.
Myth 1: Consultants need to be onsite to get all the facts — False!
Defining the scope of desired results is key to a good remote audit. We handle this in two ways.
First, we send an introduction email which includes an overview of our process along with information and access we need in order to complete the audit remotely. This email must be comprehensive since we are working remotely and want to prevent time loss and missing details. From this, we identify key questions the investment team would like answered.
