When it comes to venture capital and growth equity investments, the bottom line is the top line. If a company can grow its revenue, then odds are it will generate a strong return for its investors. Market due diligence is a key component of determining the growth prospects, and therefore the return prospects, of an investment. However, the tried and true methods of market due diligence typically leave out one of the most important elements of measuring the opportunity – Pipeline Interviews.
In our experience, Pipeline Interviews – interviews with accounts that fell out of the pipeline without making a purchase – are rarely conducted during a market due diligence effort. However, they provide vital insight into the true market potential of the company, a perspective that cannot be gained elsewhere. To understand why, we have created a series of blogs to explore the subject. Next time we will by looking at what is typically included in a market due diligence effort.
To read the full White Paper, please go to Semaphore News and click on the May 3, 2010 link titled – White Paper – Market Due Diligence