We covered the economics of SharkTank in a video, and we discovered how roughly 50% of the deals that were made that aired on SharkTank… never actually happened.
That money is further away than you might think. And it’s all because of two words: Due diligence.
How to get the yes?
In the tech startup world, the equivalent of these guys saying yes is getting a Term Sheet from an investor- which is essentially a one or two-page summary of what the deal is going to be.
But from term sheet to money, there’s a long, long way called the due diligence process.
Investors check that everything you pitched is real, check that you have a legal structure in order, and your contracts, stock vesting, trademarks, and everything…
What they’ll be doing is navigating your data room, and if your data room is no good.. well, that’s when deals fall apart.
And today, I want to walk you through everything that investors expect to see in a Data Room, and, most useful for you, how to solve them. I also made a checklist that I’ll link here for you to download.
