Investment Due Diligence
Due diligence for early-stage and technology businesses
The additional considerations involved when future performance depends on technical and commercial milestones.
For Investors
Due Diligence & Investment Intelligence
Inventya provides independent due diligence for investors and fund managers assessing innovation-led and technology businesses. We combine financial analysis with market, commercial, technology and IP evidence where these factors are material to the investment case.
Our approach
Due diligence for innovation-led businesses
Innovation-led businesses can require a broader assessment than established companies with predictable revenues and long trading histories.
Future performance may depend on technical development, regulatory approval, market adoption, successful commercialisation or further capital. Financial forecasts therefore need to be considered alongside the assumptions on which they depend.
Inventya brings together finance, market research, commercialisation and innovation expertise within the same assessment.
We review the financial position, forecasts, cash requirements and future funding needs of the business. Where these depend on commercial or technical assumptions, we use independent company, market, investment, technology and IP information to provide additional evidence.
We can also use benchmarking, sensitivity analysis and alternative scenarios where material assumptions remain uncertain.
The scope is agreed with the investment team and can complement its internal appraisal process, providing additional specialist analysis where required.
Financial assessment
Financial performance, forecasts, cash flow, liquidity, capital requirements and future funding needs.
Commercial and technical assessment
Market, commercialisation, technology and IP factors that are material to future performance.
Independent validation
External evidence, benchmarking and scenario analysis used to assess material assumptions.
Investment Due Diligence
Financial, commercial and technical assessment
Inventya's due diligence is designed for businesses where the financial case is closely connected to innovation and commercialisation.
We assess the company's current financial position and its ability to deliver its plans, including the assumptions within management forecasts and the capital required to reach future milestones.
For example, projected revenues may depend on a new product reaching the market within a particular timeframe. Future cash requirements may assume another investment round. Expected margins may depend on manufacturing scale. Commercial growth may depend on regulatory approval, customer adoption or entry into a new geography.
Where these factors are material, they are considered as part of the assessment rather than separately from the financial model.
Our multidisciplinary team allows us to bring in market, commercialisation, technology or IP expertise according to the requirements of the transaction.
Financial position and viability
Review historic performance, management accounts, cash position, liquidity, solvency, debt and other financial commitments.
Forecasts and financial model
Review revenue, costs, margins, cash flow and financing assumptions for consistency and reasonableness, including sensitivity or alternative scenarios where appropriate.
Capital requirements
Assess runway, use of funds and the capital required to reach planned technical, regulatory and commercial milestones, including dependencies on future finance.
Market and commercial position
Assess the market, customer demand, competitive environment, business model and route to commercialisation where these are relevant to the financial case.
Technology and IP
Consider technology maturity, differentiation and relevant IP or innovation evidence where these are material to the investment.
Company and management context
Review company structure, ownership, management information and other relevant company intelligence as part of the overall assessment.
Reporting & Recommendations
Clear evidence for the investment process
The scope and depth of each review is agreed with the investment team according to the size, stage and complexity of the opportunity.
Inventya's reporting is designed to provide a clear record of the analysis undertaken, the evidence considered and the areas requiring further attention.
Findings are presented factually, with a clear distinction between available evidence, management assumptions and areas where further information is required.
Depending on the scope, the report can cover:
- financial position and future viability;
- assessment of management forecasts and key assumptions;
- cash requirements and dependencies on future finance;
- commercial and market evidence relevant to projected performance;
- technology and IP considerations where applicable;
- sensitivity and downside scenarios;
- material risks and areas of uncertainty;
- outstanding information or further specialist review required.
This emphasis on factual reporting and explicit recommendations reflects Inventya's established due diligence methodology, which includes independent validation, identification of risks and additional information requirements, and quality review before reports are issued.
Inventya's project records report 187 assessments covering £481m of project value and £133m of funding intervention.
Insights
Related insight
Practical analysis from our work with innovation-led businesses, financial models and commercialisation.
Financial Forecasting
Assessing forecasts in innovation-led businesses
Using market evidence, financial analysis and scenario modelling where future revenue assumptions remain uncertain.
Capital Requirements
Assessing the funding required to reach the next milestone
Considering runway and future capital requirements in businesses where technical development and commercialisation remain ongoing.
Due diligence for innovation-led investments.
Inventya works alongside investors and fund managers where an investment requires additional financial, commercial or technical assessment.
