Dogwood Ventures helps outlier founders build enduring companies through high conviction partnerships. We believe transparency is the only path toward building this type of trusting relationship, especially during the fundraising process.
Each venture capital firm’s investment processes is somewhat unique and can feel like a black box. We’d like to change that. This site outlines our full diligence process from first interaction to cash in the bank. Below you can explore our investment criteria, what data we request, the approximate timing of each phase, and how to best prepare.
| Phase | Founder Input | Dogwood Steps | Timing | Potential Outcomes |
|---|---|---|---|---|
| 1. Initial Diligence | • Pitch deck | |||
| • Key metrics: ARR, growth, burn multiple, CAC, LTV, churn | ||||
| • Short demo | • Metric screen and TAM sanity check | |||
| • Internal rubrics (see below) | ||||
| ~48 hours | One of three: | |||
| • Pass | ||||
| • Stay in touch | ||||
| • Move to phase 2 | ||||
| 2. Company and Market Deep Dive | • Data room w/ financials, cap table, roadmap | |||
| • Multiple meetings w/ founders, execs | ||||
| • Customer, partner and investor calls | ||||
| • Access to product / demo environment | • Calls w/ team, customers, partners, existing investors | |||
| • Financial modeling | ||||
| • Competitive & market analysis | ||||
| • Draft investment memo | ||||
| • Investment committee review | ~4-8 weeks* | • Issue term sheet | ||
| • Pass with feedback | ||||
| 3. Final Diligence | • Diligence clarifications | |||
| • Detailed legal documentation of company history | ||||
| • Review and sign equity issuance documents | • Legal and financial diligence | |||
| • Background checks | ||||
| • Support legal docs drafting | ||||
| • Align on post-investment goals | ||||
| • Wire funds | ~30 days | • Signed equity agreements | ||
| • Wire funds | ||||
| • Post investment support | ||||
| • Pull term sheet (rare occurrence when new information is discovered) |
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*In practice we see this vary dependent on schedules. Our promise is to go at the speed of the founders.
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