With Cyber Security being one of the fastest-growing global start-up sectors, huge opportunities exist for those making early investments in innovative and disruptive technologies. But how do you determine which companies have the potential to become the next dragon or unicorn? Due diligence is a key starting point to aid decision-making and a vital review process to de-risk investment opportunities for Venture Capital partners.
Unfortunately, it can sometimes be seen as a laborious but essential tick box exercise. Carrying out due diligence on early-stage companies can be particularly time-consuming as often there isn’t much in the way of concrete data or evidence to establish the company’s value. However, by engaging with specialists who have extensive knowledge and experience of the cyber security market potential investors can be assured of an in-depth due diligence assessment conducted by industry experts.
The objective in all cases it to deliver real-world, honest, and accurate feedback on the solution and its market potential, along with insightful recommendations to define and develop the Go-To-Market plan, so that VC partners can ensure they are investing in robust, unrivalled, and ambitious companies.
Although it may seem obvious, research shows that due diligence pays off with investors who conduct a comprehensive due diligence process seeing a positive impact on their investment return. If you don’t have the necessary industry knowledge and insight, then it is always best to outsource to professional advisors who can use their network and experience to thoroughly assess the potential risks and rewards of the investment proposition.
One of the major benefits of having independent experts evaluate a business is that they can add real value to it even before completion. Their experience can highlight issues management may not have previously considered; reveal value opportunities and gaps in strategy; or areas for further development that will strengthen the proposition. In addition, they can help develop plans to address any shortcomings and provide ongoing expertise to help grow the business.
As every potential investment calls for a different approach, CBG offers a bespoke investor review service. For further information on how we can support your due diligence process please contact firstname.lastname@example.org or call +44 (0) 1223 843903.
By Kathryn Miller, Business Operations Director
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