Prompt for Generating an Initial Due Diligence Checklist for an SA Tech Start-up
Prompt Title/Objective: Create a Preliminary Due Diligence Checklist for Investment in an SA Tech Start-up.
The Prompt Itself:
"Act as a Venture Capital Analyst specialising in the South African early-stage technology sector.
Task: Generate an initial due diligence checklist for evaluating a hypothetical SA-based FinTech start-up ('PayUbuntu') seeking seed funding. 'PayUbuntu' claims to have an innovative mobile payment solution targeting underserved communities. Your checklist should cover the following broad categories with 2-3 specific questions/items per category relevant to an SA tech start-up:
1. **Team & Expertise:** (e.g., Founders' experience, technical capabilities within team relevant to SA)
2. **Product & Technology:** (e.g., Scalability, IP protection, user experience for target demographic)
3. **Market Opportunity & Traction (SA Context):** (e.g., Size of underserved market, current user numbers, regulatory landscape for FinTech in SA - PASA, FSCA)
4. **Business Model & Financials:** (e.g., Revenue streams, cost structure, realistic financial projections for SA market)
5. **Legal & Compliance (SA Specific):** (e.g., Company registration, POPIA compliance, awareness of B-BBEE ICT Sector Code implications for future growth) Format as a bulleted list under each category heading."
Transformation Background: Streamlines and systematises the early-stage investment screening process, allowing for more efficient allocation of analytical resources.
Regulatory Alignment: Prompts consideration of key South African regulations from the outset, such as the Protection of Personal Information Act (POPIA) for a data-heavy FinTech, the Companies Act for corporate structure, and awareness of FSCA requirements for financial services.
Economic Reality Check: Assesses the start-up's viability within South Africa’s specific funding landscape, its potential contribution to B-BBEE enterprise development pillars (e.g., through the Financial Sector Charter or ICT Sector Code), and its fit with local market needs and challenges like financial inclusion.
Expected Output: A structured checklist with 2-3 targeted due diligence questions under each of the five specified categories, all tailored to an SA FinTech start-up context.
Refinement Tips:
If the start-up is in a different tech niche (e.g., AgriTech, HealthTech), specify this for more tailored questions.
Ask the AI to highlight 1-2 "red flag" items under each category specific to the SA environment.
Request a brief rationale for why each category is critical in due diligence.