Sabaki Guide
Investor Diligence Workflow For Source-Backed Deals
A source-backed diligence workflow for investors reviewing decks, metrics, memos, and portfolio fit.
An investor diligence workflow is the repeatable process an investment team uses to turn a company deck, documents, metrics, references, and market research into a decision-ready view of a deal. Source-backed workflows keep each claim tied to the material that supports or contradicts it.
Key Takeaways
- Strong diligence separates company claims from verified evidence.
- A useful workflow produces a memo, open questions, risks, and source references.
- Repeatability matters because every deal should clear the same core checks before partner time is spent.
How To Run Source-Backed Investor Diligence
- Extract the company claimsPull traction, market, team, product, financial, and fundraising claims from the deck and room.
- Map each claim to evidenceAttach source documents, metrics, transcripts, or third-party research to each material claim.
- Identify diligence gapsSeparate missing evidence from weak evidence so the team knows what to request next.
- Draft the investment memoWrite the investment case, risks, and recommendation with citations beside each major claim.
- Track decision questionsKeep unresolved questions visible until they are answered, waived, or converted into deal terms.
Quick Comparison
| Diligence Area | Evidence To Review | Output |
|---|---|---|
| Traction | Revenue, retention, pipeline, usage | Momentum assessment |
| Market | TAM logic, customer segments, competition | Market conviction |
| Team | Founder history, hiring plan, references | Execution risk |
| Financials | Model, burn, runway, margin | Financing risk |
| Legal and terms | Cap table, contracts, prior financing | Deal constraints |
Frequently Asked Questions
What is source-backed diligence?
Source-backed diligence ties each investment claim to the document, metric, or research source behind it. It helps investment teams separate persuasive narrative from verified evidence.
What should an investor diligence workflow produce?
The workflow should produce a memo, risk register, open question list, source map, and decision recommendation. The output should show both what is known and what remains unresolved.
How does AI help investor diligence?
AI can extract claims, summarise documents, draft memos, and identify gaps. It should not replace investment judgment; it should make the evidence easier to inspect.
Why do citations matter in investment memos?
Citations let partners trace claims back to decks, documents, financials, or research. That makes the memo easier to challenge and improves decision quality.