Business Pitch Dictionary by pitch.dog
Investor diligence & data rooms · Core

Due diligence

Also called: diligence

ELI5

Check the important facts and risks before doing the deal.

Used in conversation

“Due diligence should test the investment thesis, not merely collect documents.”

Definition

Investigation and verification performed before an investment, acquisition, partnership or other material decision.

Here “Due diligence” means: Investigation and verification performed before an investment, acquisition, partnership or other material decision.

Pitch context

You will see “Due diligence” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches investor diligence & data rooms.

Why it matters: In investor diligence & data rooms, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 7

Direct term-level sources and supporting source families.