12 Things you Need to Know Before Buying that Startup.
By Bukola Edgar Beyond the Numbers: Why Financial Records Aren't the Only Important Factor to Consider If you're considering acquiring or investing in a startup, it's crucial to perform due diligence. Although financials are a critical consideration when investing in a startup, there are several other important factors that should not be overlooked, as they could also impede the startup's growth. Below are some key things to keep in mind when investing in or acquiring a startup: 1. Product. Verify that the company has a legitimate product and that reported metrics are accurate. Be cautious of companies that have the appearance of a product but no substance. For example, JPMorgan Chase recently sued the founder of a fintech startup it acquired for $175 million, alleging that the founder provided misleading information about the scale and success of the business by creating a long list of fake users. If you're investing in a company, be sure to confirm that the pro