Know Your Investor (KYI)
Know Your Investor (KYI) is a due diligence principle that encourages startups to understand the background, objectives, and investment strategies of potential investors to ensure alignment of interests and long-term partnership potential.
Benefits
KYI helps startups avoid bad matches with investors. It ensures investors are on board with the startup`s vision, supporting growth and success.
Frequently Asked Questions
What is investor due diligence?
Investor due diligence is when a startup checks an investor`s background and goals. It makes sure both sides will work well together.
What is the seed funding stage of a startup?
The seed funding stage is when a startup is just beginning. It`s looking to raise money to prove its concept and start making its product.
Why is due diligence important for startups?
Due diligence is a important part for startups. It helps them find investors who are not just giving money but also value and support for long-term success.
Key Takeaway
KYI is about making smart choices in picking investors. It`s a way to ensure startups and investors are heading in the same direction, leading to successful partnerships.