Entrepreneurs looking for funding can not escape from the due diligence from investors. In order to have more founders to understand the process of investment due diligence, we are introducing a new and special series, where we talk with investors about due diligence.
Recording from Money 20/20 China in Hangzhou, Oscar Ramos talked with Carman Chan, Founder and Managing Partner of Click Ventures who successfully invested in Spotify, Meetup and many tech companies.
In this episode, Chan shared insights on how they evaluate traction, team, product as well as what founders should have prepared for investors, the proper plan for companies to work on and lastly the differences in Asia versus the West regarding due diligence.
1:32 Carman Chan’s strong background in data and mathematics
2:08 Introducing Click Ventures, investment thesis and projects
3:38 Due Diligence process
4:25 Importance of company metrics
6:36 Best tools to measure traction
8:30 Red flags Carman met in the process
10:30 Due Diligence in product
12:47 Product roadmap
13:20 Importance of the founding team
14:04 Missing team members
15:07 Team related problems in Due Diligence
15:55 Other parts Carman evaluates including advisors, founder vesting plan, etc
17:22 Relationship with co-investors in Due Diligence
18:25 Differences in Asian Companies compared to those from other countries
22:11 Contact Information and Signing Off