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Today, South African VC firm Knife Capital officially launched its online due diligence tool for startups and investors.
The web-based tool, called YueDiligence, automates and structures the initial due diligence process to capture, analyse, summarise and communicate the commercial potential of a company in an investor-friendly format.
Co-founder of YueDiligence and Knife Capital Keet van Zyl explains that while access to funding remains one of the startup industry’s most pressing challenges, lack of access to information may be the real reason why not more entrepreneurial ventures get funded.
“Without seamless information exchange during the due diligence process, the investment cycle drags on and deal fatigue creeps in,” he says. “Transactions with good intent and exciting prospects fail to close, resulting in the misallocation of resources for all parties involved.”
Combining dynamic company information with an ever-growing peer database and self-learning algorithms, YueDiligence generates various gap analysis reports, an interactive dashboard, action points, growth recommendations, indicative company valuation range and an active due diligence checklist.
With van Zyl at its head, YueDiligence’s founding team also includes the experienced Andrea Bӧhmert and Eben Van Heerden. In 2012, Knife Capital was recognised as South Africa’s top VC firm, raking up achievements such as exiting radar tech startup iKubu to Garmin and General Electric to Visa.
Bӧhmert explains that risk quantification methods like YueDiligence can help close the gap between investors and entrepreneurs. She adds that the technology is geared to disrupt the industry:
“In the knowledge economy, changes to a company’s risk profile should have an immediate effect on its valuation and access to blended financial products. YueDiligence is a disruptor that will help shape the banks of the future by changing the way SME support can be measurably facilitated.”
While only officially going live with the product today, YueDiligence has already been making a name for itself. Earlier this year, the startup was named one of Africa’s top three startups by the Innotribe Startup Challenge. The team will now fly over to Sibos in Singapore where they will compete at the Grande Finale pitching competition.
With the additional free trail, a standard one-year subscription to YueDiligence costs US$400 which allows companies to update information and improve their ratings over time. Corporate plans start from US$4 000 for 12 companies.