← Back to Resources
✅
INTERACTIVE CHECKLIST

Due Diligence Checklist

Comprehensive checklist covering financial, impact, operational, and legal dimensions of impact investment evaluation.

Overall Progress

0%
0 of 0 items completed
🎯

Impact Assessment

Evaluate impact intentionality, measurement, and additionality

0/8
Impact thesis clearly articulated
Company has documented theory of change connecting activities to outcomes
SDG alignment identified
Specific UN SDG targets and indicators mapped to business model
Impact metrics defined and tracked
IRIS+ aligned KPIs with baseline data and targets established
Stakeholder outcomes verified
Evidence of positive outcomes for beneficiaries (surveys, testimonials, third-party data)
Additionality assessment completed
Understanding of what impact would occur without this investment
Negative externalities identified
Assessment of potential negative impacts and mitigation strategies
Impact reporting cadence established
Clear process for ongoing impact data collection and reporting
Third-party verification available
B Corp, GIIRS, or other independent impact verification
💰

Financial Analysis

Review financial health, projections, and investment terms

0/10
Historical financials reviewed (3 years)
Audited or reviewed financial statements analyzed for trends
Revenue model validated
Unit economics, customer acquisition costs, and LTV understood
Financial projections stress-tested
Multiple scenarios modeled with sensitivity analysis
Use of proceeds documented
Clear allocation of investment capital to specific activities
Cap table reviewed
Ownership structure, dilution, and investor rights understood
Valuation benchmarked
Comparable company analysis and valuation methodology reviewed
Cash flow runway assessed
Months of runway and path to cash flow positive understood
Exit opportunities identified
Realistic exit pathways and timeline assessed
Investment terms acceptable
Terms compared to market standards for stage and sector
Financial controls adequate
Accounting systems, controls, and reporting capabilities assessed
👥

Team & Operations

Assess leadership, team capabilities, and operational readiness

0/8
Founder background checks completed
Professional history, references, and reputation verified
Leadership team capabilities assessed
Key hires identified, gaps acknowledged with hiring plan
Board composition reviewed
Governance structure and board expertise evaluated
Customer references contacted
Satisfaction, retention, and value proposition validated
Technology/product reviewed
Technical due diligence completed, IP protected
Operational scalability assessed
Systems and processes can support projected growth
Key partnerships verified
Strategic partnerships confirmed and terms understood
Competitive position analyzed
Market position, differentiation, and competitive moat evaluated
⚖️

Legal & Compliance

Review legal structure, compliance, and documentation

0/8
Corporate documents reviewed
Articles, bylaws, operating agreements current and compliant
Material contracts reviewed
Customer, vendor, and partner agreements examined
Intellectual property verified
Patents, trademarks, copyrights properly registered and owned
Litigation history checked
No material pending or threatened litigation
Regulatory compliance confirmed
Required licenses, permits, and registrations in place
Employment matters reviewed
Contracts, equity grants, and labor compliance assessed
Data privacy compliance verified
GDPR, CCPA, and other relevant privacy regulations addressed
Investment documents reviewed by counsel
Term sheet, subscription agreement, and side letters approved
🌱

ESG & Risk Management

Evaluate environmental, social, governance factors and risks

0/6
Environmental impact assessed
Carbon footprint, resource use, and environmental policies reviewed
Social practices evaluated
Labor practices, diversity, community engagement assessed
Governance standards met
Board independence, transparency, ethical policies in place
Key risks identified and documented
Risk register created with mitigation strategies
Supply chain assessed
Ethical sourcing, supplier practices, and risks evaluated
Stakeholder management plan exists
Process for engaging and addressing stakeholder concerns

Ready for Deeper Analysis?

Use our comprehensive guide for detailed due diligence methodology

Read the Full Due Diligence Guide →

Related Tools

📊

Impact ROI Calculator

Calculate social returns
🎯

SDG Alignment

Map to global goals
🔄

Theory of Change

Build your impact logic