Investment Opportunity Due Diligence Framework

You are an investment analyst who conducts due diligence on opportunities. Create a due diligence framework for this investment.

Investment type: [STARTUP / PUBLIC EQUITY / REAL ESTATE / FUND / OTHER]
Company/Asset: [NAME]
Investment amount: [SIZE]
Investor type: [ANGEL / VC / PE / INDIVIDUAL]
Industry: [SECTOR]
Available information: [WHAT YOU HAVE]

**DISCLAIMER: This is not investment advice. Consult a licensed financial advisor.**

Provide:

**Due Diligence Checklist**

**1. Business Analysis**
- [ ] Business model understood
- [ ] Revenue model verified
- [ ] Unit economics analyzed
- [ ] Market size validated
- [ ] Competitive position assessed
- [ ] Customer concentration reviewed
- [ ] Supplier dependencies identified

**2. Financial Review**
- [ ] Historical financials (3 years)
- [ ] Revenue growth trajectory
- [ ] Margin trends
- [ ] Cash flow analysis
- [ ] Balance sheet health
- [ ] Working capital needs
- [ ] Capital expenditure requirements
- [ ] Projections reasonableness

**3. Team Assessment**
- [ ] Founder/management backgrounds
- [ ] Domain expertise
- [ ] Track record
- [ ] References checked
- [ ] Organizational structure
- [ ] Key person risk
- [ ] Equity ownership

**4. Legal Review**
- [ ] Corporate structure
- [ ] Cap table clean
- [ ] IP ownership clear
- [ ] Material contracts
- [ ] Litigation history
- [ ] Regulatory compliance
- [ ] Employee agreements

**5. Market Analysis**
- [ ] Market dynamics
- [ ] Growth drivers
- [ ] Competitive landscape
- [ ] Barriers to entry
- [ ] Customer validation

**Key Questions to Answer**
| Question | Findings | Risk Level |
|----------|----------|------------|
| Why now? | | |
| Why this team? | | |
| What could go wrong? | | |
| Path to liquidity? | | |

**Risk Assessment**
| Risk | Probability | Impact | Mitigation |
|------|-------------|--------|------------|
| Market risk | | | |
| Execution risk | | | |
| Financial risk | | | |
| Competitive risk | | | |

**Valuation Analysis**
- Method used: [DCF / COMPS / PRECEDENT]
- Key assumptions:
- Valuation range: $X - $Y
- Entry valuation: $X
- Reasonableness: 

**Return Analysis**
| Scenario | Exit Value | Return | IRR |
|----------|------------|--------|-----|
| Bull | | | |
| Base | | | |
| Bear | | | |

**Investment Decision**
- Recommendation: [INVEST / PASS / MORE INFO NEEDED]
- Confidence: [HIGH / MEDIUM / LOW]
- Terms conditions:

**Monitoring Plan**
- Key metrics to track
- Reporting requirements
- Board/information rights

You are an investment analyst who conducts due diligence on opportunities. Create a due diligence framework for this investment.

Investment type: [STARTUP / PUBLIC EQUITY / REAL ESTATE / FUND / OTHER]
Company/Asset: [NAME]
Investment amount: [SIZE]
Investor type: [ANGEL / VC / PE / INDIVIDUAL]
Industry: [SECTOR]
Available information: [WHAT YOU HAVE]

**DISCLAIMER: This is not investment advice. Consult a licensed financial advisor.**

Provide:

**Due Diligence Checklist**

**1. Business Analysis**
- [ ] Business model understood
- [ ] Revenue model verified
- [ ] Unit economics analyzed
- [ ] Market size validated
- [ ] Competitive position assessed
- [ ] Customer concentration reviewed
- [ ] Supplier dependencies identified

**2. Financial Review**
- [ ] Historical financials (3 years)
- [ ] Revenue growth trajectory
- [ ] Margin trends
- [ ] Cash flow analysis
- [ ] Balance sheet health
- [ ] Working capital needs
- [ ] Capital expenditure requirements
- [ ] Projections reasonableness

**3. Team Assessment**
- [ ] Founder/management backgrounds
- [ ] Domain expertise
- [ ] Track record
- [ ] References checked
- [ ] Organizational structure
- [ ] Key person risk
- [ ] Equity ownership

**4. Legal Review**
- [ ] Corporate structure
- [ ] Cap table clean
- [ ] IP ownership clear
- [ ] Material contracts
- [ ] Litigation history
- [ ] Regulatory compliance
- [ ] Employee agreements

**5. Market Analysis**
- [ ] Market dynamics
- [ ] Growth drivers
- [ ] Competitive landscape
- [ ] Barriers to entry
- [ ] Customer validation

**Key Questions to Answer**
| Question | Findings | Risk Level |
|----------|----------|------------|
| Why now? | | |
| Why this team? | | |
| What could go wrong? | | |
| Path to liquidity? | | |

**Risk Assessment**
| Risk | Probability | Impact | Mitigation |
|------|-------------|--------|------------|
| Market risk | | | |
| Execution risk | | | |
| Financial risk | | | |
| Competitive risk | | | |

**Valuation Analysis**
- Method used: [DCF / COMPS / PRECEDENT]
- Key assumptions:
- Valuation range: $X - $Y
- Entry valuation: $X
- Reasonableness: 

**Return Analysis**
| Scenario | Exit Value | Return | IRR |
|----------|------------|--------|-----|
| Bull | | | |
| Base | | | |
| Bear | | | |

**Investment Decision**
- Recommendation: [INVEST / PASS / MORE INFO NEEDED]
- Confidence: [HIGH / MEDIUM / LOW]
- Terms conditions:

**Monitoring Plan**
- Key metrics to track
- Reporting requirements
- Board/information rights