# Due diligence

Concept · [Fundraising and equity](https://ecosystem.samcarlton.com/fundraising)

Also called: diligence, DD

The checking an investor or buyer does before committing money: reviewing your finances, legal documents, product and the claims you have made.

**For example:** Before investing, a firm asks to see your bank statements, customer contracts, [cap table](https://ecosystem.samcarlton.com/cap-table) and proof that the company owns its code.

## Connects to (9)

- [Term sheet](https://ecosystem.samcarlton.com/term-sheet): A short document that lays out the main terms of a proposed investment, such as the amount, the valuation and the investor's rights.
- [Cap table](https://ecosystem.samcarlton.com/cap-table): Short for capitalization table.
- [Intellectual property](https://ecosystem.samcarlton.com/intellectual-property): Things you create that can be owned, such as code, designs, brand names and inventions.
- [Lead investor](https://ecosystem.samcarlton.com/lead-investor): The investor who negotiates the terms of a round with the founders and usually puts in the largest share of the money.
- [Data room](https://ecosystem.samcarlton.com/data-room): An organized online folder of a company's key documents, shared privately with investors or buyers so they can check the facts during due…
- [SOC 2](https://ecosystem.samcarlton.com/soc-2): An examination of how a service company protects customer data.
- [Track One](https://ecosystem.samcarlton.com/track-one): A US Patent and Trademark Office option to pay extra fees so a utility or plant patent application gets prioritized examination.
- [Fractional CFO](https://ecosystem.samcarlton.com/fractional-cfo): A part-time chief financial officer.
- [Technical due diligence](https://ecosystem.samcarlton.com/technical-due-diligence): A review of a company's technology by an outside expert before an investment or an acquisition: how the product is built, its security…

> This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.

Map view: https://ecosystem.samcarlton.com/due-diligence