What is Due Diligence?

What is Due Diligence?

In the past few years, investing in technology startups is a fairly popular way of investing. But novice investors, not having much experience behind them, can easily make a mistake - invest in weak projects, incompetent initiators or outright scammers. 

According to some experts, some of the projects that the market offers in 2017 may be fraudulent. This is connected with the fact that  the development of the virtual economy, makes investing much easier. It is for this reason that people are increasingly investing their money almost "without looking", the risk of investing in a "hype" that does not have the basis for further prosperity increases. To avoid this error and not to lose funds, it is necessary to carry out a quality Due Diligence (DueD).

Due Diligence (legal and economic expertise) - conducting an in-depth analysis of the investment object and drawing up a report on the results. The analysis includes an assessment of investment risks, a study of the company’s activities, a comprehensive check of its financial condition and position in the market, the competence and previous experience of the involved team. The results of DueD are an integral part of all investment transactions in the business world. If you have no real experience behind this, you should resort to the services of the appropriate specialists. As a rule, such checks are carried out by consulting companies. This service can cost $ 5000 and much higher, depending on the size of the company being researched. It’s clear, investors with little capital can not conduct such studies, as economic sense is lost.

It should be remembered that Hypercube organizes competitions and carefully selects projects. The fund invests the funds of its founders, investors and partners. It is extremely important for us to reduce the risk of project failure to a minimum. Hypercube experts carry out a thorough check and detailed analysis of projects and their prospects. Financing is allowed only for those projects that have the greatest chance of success, among all submitted to the competition. Thus, fund investors who do not have large capitals get an opportunity to protect themselves and their accumulations from making mistakes in making decisions.

Choose only reliable partners and proven projects, analyze risks and invest your money wisely.