Investing in a startup company presents a number of risks, some of which are hard to quantify. An essential component of any startup is the quality of the technical team and of the architecture on which the team is building the “next big thing”.
Rosewood recognises that the risk of investment is larger in an early stage startup, while at the same time the technical infrastructure is less mature. We offer a structured approach to evaluating early stage startups on behalf of seed funders, angel investors and early stage venture capital investors.
Our early stage due diligence process focuses on evaluating the technical team and the direction in which the architecture is evolving. We point out strengths and weaknesses and potential pitfalls.
Beyond seed and angel funding, companies have a more established team of technologists, with a platform that has matured beyond the minimum viable product that was used to launch the company. At this level of maturity, Rosewood’s due diligence process retains a strong focus on team and process, but we pay additional attention to the state of the software, areas for improvement, and scalability problems.
The preparation phase includes a thorough overview of the company to establish where the company is in its lifecycle, and what the most suitable approach to a due diligence exercise is.