A due diligence checklist for VC funds would include reviewing and evaluating any available data in the following areas. Firstly, financial history, performance, and metrics. Checking to see that the company is delivering growth and profitability in line with its targets. Projections need to be checked. We need to examine the company's future growth targets and make sure they're viable. Third party vendors and suppliers agreements. We need to ensure that pre-signed agreements do not in any way impede further growth of the company. They must be aligned to the company's growth strategy. Also, legal and intellectual property VC funds will need to confirm what a prospective investment company actually owns and the rights attached. This will include assessment of regulatory risks. It will also need to be familiar with the regulatory risks within the sector or area of business.

Next up, market assessment size and growth metrics, competitive landscape, sales volume, and product pricing. A deep dive on the targeted marketplace of the company, including prospective growth and what this would mean for the company's own growth projections. This would include looking at demand and price dynamics and the competitive landscape. Next, we need to check the product evaluation, technology assessments, and level of differentiation.

VC analysts would seek to compare the company's products and technology to alternative providers and competitors in the field to make sure that we've got some kind of advantage.

Next, the business model. This needs to be scrutinized to make sure it's been stress tested and it's deliverable. We want to be looking at the potential for recurring revenue, scalability, and customer perception of the products. The sales forecast would be inspected to look at the quality of the customers and aspects such as recurring revenue and the scalability of the business. All are important to growing a valuable business. The next thing then is checking the founder and key management team. VC investors would be working alongside the founders and the key management team, so we'll make sure they look at their bios, level of experience and professional credentials. It's important to consider their views on exit strategy and make sure they will be aligned with any potential investment strategy by the VC funds. Lastly, we need to be looking at series terms and cap tables. Analysts will need to study previous series funding terms and check for anything such as prorata rights, which are available to current shareholders and will affect future shareholders such as the VC fund. Analysts will also carefully examine the cap table to see who the current and previous shareholders are and what type of shares they have. Particularly asking are they voting or non-voting. A due diligence process varies in length of time as uncovering all of this information is time consuming and made even more strained by the fact that sensitive financial information is hard to find for private and early stage companies.