Start Thinking Early About Your Due Diligence Checklist

Please find a high-level Due Diligence checklist of the documents and reports that VC’s may request as part of the capital raising process.  Are yours ready?

  • Pitch deck – This helps investors get details in driving the due diligence process overall.  Keep it short, to the point and get to the “Ask” and “Why”, quickly
  • Financial statements – Income, cash-flow, and balance sheet
  • Financial projections – Estimates of growth & burn rate – provide very realistic growth targets over the coming quarters. Include a deeper revenue breakdown based on type of rev and over a specific period of time
  • Use of funds – Break down of how you will use the money you are raising
  • Contracts – Equity breakdown for the founders, any prior investments, employee & customer contracts
  • Org chart – Complete list of employees and roles as well as bios and previous success areas of the top-level executives
  • Market analysis – View on the market size, segments, and your TAM (total addressable market)
  • Competitive analysis – Realistic view on your major competitors and their advantages
  • Business plan – While these seem to be less common today it is smart to provide a detailed overarching business plan

Nice to have additions to the Due Diligence docs above:

  • Sales process overview with details
  • Marketing plan and mix to include CAC (Customer Acquisition Cost) and CLV (Customer Lifetime Value)
  • Future products/services and/or additional wallet share ideas

Let us know if you would like to speak about your checklist to make sure it is ready and polished…

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