Due Diligence Milestones

Due diligence milestones are specific, time dependent activities that are logical steps in the development and commercialization of the technology. These milestones should be linked to the business plan, and as a measure of progress, provide decision points for investors. Milestones in the license agreement are used as a measure of the company's progress in commercializing the technology. Failure to meet milestones is one basis for terminating the license agreement. Some examples of milestones are as follows:

• Finish prototype development
• Finish pre-production prototype
• Beta test prototype with potential customers
• Write and submit SBIR/STTR/ATP etc.
• Present product at trade shows and conferences
• Field test at customer sites
• Achieve sales of X units by time Y
• Projected sales for 3-5 years (dollars and units)