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Due Diligence Methodology

High-quality due diligence is essential for successful startup investing but is highly specialized, complex, and time-consuming.  Proper assessment requires a blend of hard and soft skills, experience in startups, product development, operations, business dev, industry knowledge and more.

Precision Labs excels in this area. Our team leverages extensive experience and industry knowledge to evaluate startup viability. Our rigorous analysis helps  investors understand the risks, rewards, and potential returns of each startup deal.

  • Product & Market Fit
  • Market & Competition
  • Founders & Team
  • Financials & Model
  • Operation & Process
  • Sales & Marketing

Investment
Assessment

Support investors with pre-investment analysis designed to assess and validate crucial aspects of potential investments, uncovering risks and validating startup thesis.

Progress Evaluation

Evaluate the progress of existing investments, compare performance vs strategic plans, analyzing overall health, identifying challenges, assessing opportunities and risks.

Strategic Monitoring

Stay ahead with our dynamic startup progress monitoring. Receive regular updates, gain actionable insights, mitigate risks, and seize opportunities for informed decision-making.

Actionable
Insights

Deliver actionable insights and recommendations to investors, highlighting specific areas of concern, suggesting executable solutions and risk mitigation strategies.

We specialize in providing in-depth assessments that go beyond surface-level evaluations

Sape

Our analyses methodology is shaped by both external and internal vantage points. The due diligence process validates the information and assumptions provided by the startup while identifying missing information that could significantly impact the potential or risk profile of the startup.

We audit startups using our 5-pillar methodology to produce a comprehensive due diligence report. Our proprietary due diligence scoring system simplifies the complex evaluation process into a clear, objective, and easily interpretable format.

Technical
Due diligence
Product & Service
Due diligence
Market & Competitor
Due diligence
Founders & Team
Due Diligence
Operation & Process
Due Diligence
Financial & Legal
Due Diligence
Technical<br>Due diligence
Product & Service<br>Due diligence
Market & Competitor<br>Due diligence
Founders & Team<br>Due Diligence
Operation & Process<br>Due Diligence
Financial & Legal<br>Due Diligence

Deep insights into the technological foundation of the company

Technical due diligence entails a comprehensive review of a company’s technology stack, architecture, security measures, compliance, and code quality. It’s vital for investors as it unveils strengths and vulnerabilities impacting the company’s value, scalability, and future growth. Key areas assessed in Tech DD include, but are not limited to:

  • Tech Stack
  • Code Quality
  • Security & Compliance
  • Architecture Review
  • Scalability
  • Future Growth
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We assess the startup's product or service, its market fit, and its competitive advantage

This includes evaluating the product’s features, functionality, and unique selling proposition to gauge its potential for success in the market. Additionally, we consider the startup’s product development roadmap and evaluate the company’s capacity to innovate and adapt to evolving market conditions.

  • Product Functionality
  • Features
  • Competitor advantage
  • Market Fit
  • Product Roadmap
  • Positioning & Pricing
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Touch

Market viability assessment of the target market, competitive landscape, and growth potential

we assess the target market, competitive landscape, and potential to secure market share, aiding investors in evaluating growth potential and long-term sustainability. Moreover, comprehending market needs, pain points, and customer desires is crucial for understanding the market landscape and ensuring clarity on the startup’s unique offerings compared to competitors.

  • Market Size & growth
  • Market trends
  • Competative Intensity
  • Purchasing behaviour
  • The opportunity
  • Market Benchmark
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A clear understanding of each team member's strengths and preferences

During due diligence, closely scrutinizing the startup’s management team is imperative. This involves evaluating their experience, qualifications, and ability to execute the business plan. Identifying team structure, roles, and responsibilities is essential for making informed investment decisions.

  • Identifying team structure, roles, and responsibilities
  • Eveluating team experience and network
  • Interview key stakeholders
  • Match of experience and skill set
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Touch

Delve deep into the core operational aspects of the target company

We provide comprehensive operational due diligence services, meticulously examining current business plans and internal operational processes. Through these evaluations, we gain a holistic understanding of the target company’s operational landscape, enabling us to formulate effective value creation strategies and mitigate operational risks.

  • Analysis of internal operational processes
  • Assessment of workforce capabilities and skillsets related to operations
  • Examination of supply chain and logistics management
  • Scrutiny of technology infrastructure and IT systems pertinent to operations
  • Assessment of regulatory compliance and legal obligations
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Assessing a startup's financial health

Analyzing financial statements, projections, and historical performance helps investors assess economic viability, revenue models, burn rates, and capital requirements. It also aids in determining the true market value of the company, evaluating growth potential, and assessing the accuracy of forecasts, providing valuable insights for investment decisions.

  • Financial statements
  • Projections
  • Burn Rate
  • Deal Evaluation
  • Revenue Model
  • True market value
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Touch

DDA Scoring Methodology

Our ratings and analysis is utilized across multiple disciplines where startup assessment is required. The due diligence scoring system simplifies the complex evaluation process into a clear, objective, and easily interpretable format.

The DDA scoring system offers crucial benefits, providing a thorough evaluation of a startup's health across key areas. It enables stakeholders to swiftly grasp the overall status, facilitating informed risk decisions. By pinpointing strengths, weaknesses, and improvement opportunities, it aids strategic planning and risk management, fostering confident investment decisions.

Each category is scored on a scale from 1 to 10 based on specific criteria, with scores weighted according to their importance. These scores are combined into an overall score for each assessment Crateria, providing a comprehensive and easily interpretable measure of the startup's strengths and weaknesses. This standardized, objective approach enables quick, informed decision-making by highlighting opportunities and risks.

The Precision Labs approach meticulously evaluates various aspects, encompassing market analysis, product assessment, business model scrutiny, traction examination, team evaluation, financials, identification of opportunities and risks, competition analysis, roadmap assessment, and other pertinent areas.

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We provide comprehensive Due Diligence analysis and strategic advisory services for startup investors

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Hamenofim 8
Herzylia,
Israel

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Saturday – Thursday
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Have a project in your mind?

Contact Us

09 : 00 AM - 10 : 30 PM

Saturday – Thursday