I want to first talk about what is Due Diligence in general, then what is Digital Due Diligence and when do you need it and what is the advantage it can provide you.
Due diligence is an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. – Wiki
DD is in the business jargon used to describes the service of checking an asset for its value. Nowadays it is mostly used in the context of M&A. It is the background check for a possible mergers or acquisition object and is mostly offered by law firms, tax firms or big consulting agencies.
Due Diligence has to do with risk management. How can the risk of a potential investment be minimized? To know that you have to look into which risks are inherited with this asset. This risks can have a lot of different causes. To detect every risk is almost impossible, that leads to a risk management or risk analyzation. So what risks are worth to get a closer look.
Digital Due Diligence
The biggest risks in a startup are different than acquiring established companies. While in established companies the risk is often caus
The biggest risks in a startup are different than acquiring established companies. While in established companies the risk is often caused by something done in the past, that can be uncovered. For startups the biggest risk is not beeing able to do what they want to do in the future. For example not getting the expected growth. Not achieving product-market-fit. Not getting traction or not getting customers. So big parts of the Digital Due Diligence for startups we provide is working with the future predictions the startup is giving us.
The sector of Digital Due Diligence is mostly covered by law firms or management consultants. In our view, these companies are not close enough to a startup to provide you with the best information.
Our mission at Manaslu Consulting is to give you the best possible advice for your investment.
Advantages of Digital Due Diligence
You should especially consider working with us if you are a first-time investor or an investor without a technical background. In this cases, the value we can provide you is very big. For you, a second opinion from someone who actually is involved in the startup scene can bring a massive benefit.
We do check especially with the background of future market disruptions, market changes and innovations coming up.
The big areas of risk for early bird startups are not covered in other Due Diligence tests.
Standardized tests and predefined checklists are not able to show the complexity of startups in an early stage phase and their typical risks.
To create a risk report for an early bird startup is something very special as we know that around 80% fail anyways so to recommend you not to buy will be correct in most of the cases. We will figure out your personal risk awareness and take that into account for our analysis.
We don’t see ourselves as an alternative to other due diligence services, we see us more as an addition to what other services offer.
As distinction, we are not offering Technical Due Diligence. We are not going to evaluate how much the servers and the other technical equipment is worth.
We are also not checking if the startup is keeping to DIN or other norms or using coding standards.