- Verify the business and the people before the numbers.
- Know exactly what you will own and how you will exit.
- Independent due diligence protects you from expensive surprises.
Investing in a private business can be rewarding, but it is very different from buying shares on a stock exchange. There is less public information, fewer rules, and your money is harder to take out. Before you sign anything, make sure you can answer these five questions.
1. Is the business real, and are the owners who they say they are?
Check the registration, the licences and the people behind it. Visit the site. A serious owner welcomes these checks.
2. Where does the revenue really come from?
Ask which customers bring the revenue and compare the reports with bank statements. If one or two customers bring most of the sales, the risk is higher than it looks.
3. What exactly will my money be used for?
A clear use of funds, with milestones, shows a real plan. A vague answer such as “growth” deserves more questions.
Due diligence checklist
| Check | What to ask for | Why it matters |
|---|---|---|
| Legal | Registration, licences, ownership records | Confirms who you are dealing with |
| Financial | Accounts and bank statements for 2–3 years | Shows if reported revenue is real |
| Commercial | Top customers, contracts, competitors | Reveals dependence and market risk |
| Deal terms | Shareholder agreement and exit clauses | Protects your rights after you invest |
4. What will I own, and what rights will I have?
Know your share, your voting rights, the information you will receive and how often, and what happens if new investors join later.
5. How will I get my money back?
Profit distributions, a later sale or a buy-back agreement: agree the exit before you enter, with a realistic timeline.
A good deal is one you understand completely before you sign.
In the Daraj Investors Club, our team reviews these points before an opportunity reaches you, and can carry out independent due diligence on your behalf before you invest.
An investor was offered a stake in a fast-growing company. The pitch looked strong, but due diligence showed that one customer brought most of the revenue and its contract expired within months. The investor negotiated protections before investing instead of discovering the risk later.
Questions owners ask
How long does due diligence take?
Usually a few weeks, depending on the size of the business and how organised its records are.
Can I invest in another country?
Yes. Through the Investors Club we research the market you choose and check opportunities on the ground.
Invest with a team on your side.
Reviewed opportunities, a network of serious investors and research in any country you choose. Membership is free.
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