It is a crucial step for potential investors or partners to gather information about the startup's business model, market potential, financials, legal status, team capabilities, and other relevant factors. Startup Due Diligence The purpose of due diligence is to identify any risks, opportunities, or concerns associated with the startup, and to make an informed decision based on the findings.

Here are some key areas typically covered during startup due diligence:

1. Business and market analysis: Evaluate the startup's business model, value proposition, target market, competition, and growth potential. Assess the market size, trends, and the startup's unique selling points.

2. Financial assessment: Review the startup's financial statements, including income statements, balance sheets, and cash flow statements. Analyze revenue streams, profitability, projected financials, and any potential risks or liabilities.