Advantages of Activat VC Due Diligence

Conducting Due Diligence (DD) is a critical step in working with any startup. At Activat VC, we have developed a structured approach that uncovers both the strengths and risks of a project. Our DD process is based on a thorough analysis of five key areas:

1. Marketing

We assess market trends, target audience, customer problems, competitive landscape, unique selling proposition (USP), business model, and marketing strategy. This provides a comprehensive understanding of the startup's market potential.

2. Product

We evaluate the product's availability, functionality, usability, technical solutions, and scalability. Special attention is given to the rationale behind development costs.

3. Finance

We review the financial model, forecast growth, assess the necessity and size of investments, and determine the return on investment.

4. Legal

We analyze risks associated with founder reliability, intellectual property protection, and the legal structure of the startup.

5. Team

We evaluate the competencies and motivation of the founders and key team members.

Each area is analyzed by an expert in the respective field. The final project assessment is brought to the investment committee for discussion. This approach enables us to make informed decisions and provide startups not only with investments but also with valuable feedback to support their growth.

We don’t just invest—we become a partner to startups, supporting them on their path to success!

9 Dec 2024