Cyber Security is now one of the fastest-growing global start-up sectors, which is why conducting an in-depth due diligence assessment with cyber specialists is more vital than ever when looking for the next unicorn or dragon.
Why expert due diligence is vital for venture capital firms
Cyber Business Growth writes:
With Cyber Security being one of the fastest-growing global start-up sectors, huge opportunities exist for those making early investments in innovative and disruptive technologies. But how do you determine which companies have the potential to become the next dragon or unicorn? Due diligence is a key starting point to aid decision-making and a vital review process to de-risk investment opportunities for Venture Capital partners.
Unfortunately, it can sometimes be seen as a laborious but essential tick box exercise. Carrying out due diligence on early-stage companies can be particularly time-consuming as often there isn’t much in the way of concrete data or evidence to establish the company’s value. However, by engaging with specialists who have extensive knowledge and experience of the cyber security market potential investors can be assured of an in-depth due diligence assessment conducted by industry experts.
The objective in all cases it to deliver real-world, honest, and accurate feedback on the solution and its market potential, along with insightful recommendations to define and develop the Go-To-Market plan, so that VC partners can ensure they are investing in robust, unrivalled, and ambitious companies.
Although it may seem obvious, research shows that due diligence pays off with investors who conduct a comprehensive due diligence process seeing a positive impact on their investment return. If you don’t have the necessary industry knowledge and insight, then it is always best to outsource to professional advisors who can use their network and experience to thoroughly assess the potential risks and rewards of the investment proposition.
One of the major benefits of having independent experts evaluate a business is that they can add real value to it even before completion. Their experience can highlight issues management may not have previously considered; reveal value opportunities and gaps in strategy; or areas for further development that will strengthen the proposition. In addition, they can help develop plans to address any shortcomings and provide ongoing expertise to help grow the business.
As every potential investment calls for a different approach, CBG offers a bespoke investor review service. For further information on how we can support your due diligence process please contact firstname.lastname@example.org or call +44 (0) 1223 843903.
Cyber Business Growth is a specialist cyber consultancy practice consolidating the skills of trusted, accomplished and influential industry experts to help enterprises, vendors, channel partners and investment companies navigate the complex world of cyber security.
The philosophy of CBG is to impart our cyber experience, knowledge, operational know-how and access to the market to those that need it. Our range of services has evolved to ensure we can successfully provide comprehensive expertise in the ever-changing marketplace by understanding and solving complex business and security challenges through advisory, cyber, and business-focused consultancy services.
Our unparalleled experience with both emerging and established Cyber Security vendors across the globe and our access to cyber experts, provides a full 360-degree view around Cyber Security, alongside our specialist service capabilities.