Due diligence on every opportunity

FrontFundr’s internal Ventures team conducts a comprehensive review of every investment on the platform, with only 6% of inbound opportunities we review making it past our investment review committee.
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Our team has expertise at these organizations

Financial Review

Your investment in a company can make the difference in a founder accumulating the necessary funds to make their vision a reality. It could help them really change the world.

Background Review

Having the ability to invest in a company at an early stage, like before they go public, gives you a high potential return as they grow! This higher potential also has more risk.

Compliance Check

Every portfolio needs some level of diversification. This helps you manage risk. If one sector or investment type reduces in value your want to shield parts of your portfolio.

What’s included in our due diligence?

  • Review of the company’s incorporation documents, existing Shareholder Agreements, Subscription Agreements or Investment Agreements;
  • Review any known commercial loan agreements, convertible loan instruments and any director and/or shareholder loan agreements;
  • Review of management history and current activities;
  • Review of any intellectual property rights;
  • Review of the share registry and capitalization table;
  • Request information on any past, current or anticipated litigation;
  • Search of available information from civil, criminal court or bankruptcy records;
  • Search of available information from regulatory authorities;
  • Review of provided financial information;
  • Review the company’s forward-looking statements and associated marketing materials, business plan or pitch deck;
  • Review the company’s valuation and any associated revenue projections; or
  • Request additional documentation and verification to support 3rd party relationships, service providers, users or customers.

FFS conducts due diligence on a best efforts basis. Risk disclosures specific for each offering are reviewed by FFS and are presented within the offering memorandum or other offering documents for the issuance. Offering documents and the risks associated with the securities of an issuer contained therein should be reviewed thoroughly by an investor or an investor’s professional advisors before making an investment.

Final review

The final step is the investment committee review

Comprised of our executive team, analysts from the Ventures’ team, and industry experts the IC will provide guidance and vote whether to:
(A) approve and move forward
(B) approve with contingencies,
(C) reject an offering outright.
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