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…
