South Africa-based Venture capitalist  Knife Capital, has disclosed that it will be launching a startup called YueDiligence by October, to assist entrepreneurs and investors with due diligence.

For those that might be oblivious of this term, technically Due Diligence (DD) implies the investigation or audit of a potential investment. It serves to confirm all material facts in regards to a sale/acquisition/investment. Generally, due diligence refers to the care a reasonable person should take before entering into an agreement or a transaction with another party (Investopedia).

Van Zyl, a member of the YueDiligence team spoke on the startup, in his words he said:

“Through the YueDiligence platform we plan to leave a positive mark on the future of the financial services industry by channeling more investment into early-stage ventures.”

If successfully launched, Knife Capital might be on its way to solving an inhibitive challenge faced by most entrepreneurs around the globe. Poor due diligence, which automatically protracts entrepreneurs’ access to funds, has been identified as the crux of many businesses’ death. Due Diligence has always stood side-by-side to lack of funding at the deathbed of many businesses.

Van Zyl spoke further on the importance of this phenomenon. In his words,

“The lack of access to funding is one of the top constraints inhibiting the growth of early-stage ventures in Africa (and all over the world) but we believe that the lack of access to information may be the real reason  early-stage deals fail.”