Dino SlothStudio due diligence · DS/DIL/02
Decision excerpt · fictional data
Kiteworks Interactive
Capability, delivery and technical risk for a proposed minority investment.
- Studio
- 42 people
- Model
- AAA co-development
- Evidence
- Plans, builds, interviews
- Confidence
- Moderate
Proceed with conditions
Delivery capability is credible. The investment case depends too heavily on one client and three people.
The reviewed work supports the studio's senior Unreal co-development claim, and its last two milestones were accepted. The proposed growth rate is not yet supported by management depth or contracted demand. Resolve the concentration and leadership assumptions before committing to the full plan.
01 · Risk shape
76%Lead-client revenue
Concentration controls the downside.
The renewal date falls four months after the proposed investment. The operating plan assumes both renewal and expansion before signed scope exists.
6Milestones reviewed
2Builds inspected
8Interviews
3Key-person roles
Dino SlothKiteworks Interactive · Decision risks
Selected findings
02 · Risk register
| Priority | Finding | Why it matters | Decision response |
|---|
| High | Lead-client concentrationRenewal is not yet contracted. | The forecast assumes expansion before signed scope. | Verify renewal and model the downside case. |
| High | Leadership does not scaleFounders cover sales, escalation and production gaps. | Two proposed teams have no experienced delivery owner. | Cost leadership before team growth. |
| Medium | Release knowledge is concentratedOne person owns submission and major engine changes. | Absence would put milestones at risk. | Pair the role and witness a release. |
| Medium | The offer outruns the proofEvidence is strongest in Unreal co-development. | Full production and live operations remain claims. | Reposition around demonstrated capability. |
03 · Before the decision
- 01
Verify revenue and renewal assumptionsFinancial diligence owns the conclusion; this review identifies the operating dependency.
Pre-close
- 02
Interview the lead clientTest renewal intent, delivery strengths and readiness for wider responsibility.
Pre-close
- 03
Agree a leadership planAdd production and technical ownership instead of treating them as spare founder capacity.
Condition
- 04
Confirm IP and change-of-control mattersProvide the dependency list and contract questions to legal counsel.
Specialist
Review boundary: this is operating and technical diligence. It is not financial, legal, tax, HR or security certification diligence, and it does not value the company or guarantee client renewal.