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Publication
There is a particular issue about publication of your report. In a normal
early-stage private investment (the type you are most likely to be involved
in), there is no reason why your report should be seen by anyone other
than the Company and the investor(s), and the VC should not have the
right to publish your report. Unless the contract states otherwise you (or
your employer) will own the copyright in the report. Where money is being
raised from the public, (e.g. where the Company is being floated on a stock
exchange), there will be a prospectus which is a public document. The
results of your work may be included in this. So make a clear statement
as to exactly who is entitled to rely upon your report. Undertaking due
diligence for public fund-raising is a specialised business, and those who
undertake it usually have considerable experience, specialised terms of
business and good, expensive, insurance. Unless you meet these criteria,
you should avoid it.
Managing Risk
Section 6
