Due Diligence Demystified: What Founders Need to Know Before Series A

Raising your Series A is a big milestone. But alongside the excitement comes investor due diligence, a process that can make or break your round.

Don’t worry — you can get ahead of it.

What is it?

Due diligence is the deep-dive process VCs use to verify everything you’ve pitched. It goes beyond belief in your vision — they want proof: solid financials, clean legal docs, clear operations, IP ownership, and a credible team.

Think of it as a full-body scan of your business.

The Series A Founder’s Due Diligence Checklist

VCs (or their lawyers) will send you their standard 'due diligence questionnaire', usually after a term sheet has been signed.

Here’s what they typically look for and what you should have ready:

1. Financials

• Updated P&L, balance sheet, and cash flow statements

• Historical financials & forward projections

• Clean cap table with ownership clarity

• Revenue proof (e.g. bank statements, invoices)

2. Legals

• Constitution, founders' agreements, reverse vesting agreements, and shareholders' agreements

• Details of options, convertible notes, SAFEs, and warrants

• IP assignments, patents, and third-party licenses

• Key contracts (customers, vendors, partners)

• Employment and compliance documentation

• Property leases or licences

3. Operations

• GTM plans, pipeline reports, customer references

• Org charts, team roles, and internal process docs

• Security and compliance policies (e.g., data protection)

• Employee policies

4. Tech & Product

• Roadmaps, architecture overviews, and technical docs

• Access to code repositories

• Third-party tool dependencies

5. Founding Team

• Bios and references for founders

• Background checks if requested

Tips to stay ahead

• Set up a digital data room early and keep it tidy (e.g. OneDrive, Google Drive)

• Answer tough questions up front to show control and ownership

• Be transparent. People respect honesty and preparation more than perfection.

Due diligence isn’t just red tape — it’s your chance to prove you’re ready to scale.

And trust us, nail the diligence process, and you’ll fast-track the close.

Fundraising in 2025

At our firm, we work with founders and investors at every stage of the fundraising journey — from term sheet to cash in the bank.

We help you prepare and negotiate term sheets, structure investment rounds, implement share option schemes, and resolve founder equity arrangements.

We also help you tell your story, in a way that builds confidence on both sides of the table.

If you’re thinking about raising capital this year — or advising a team who is — we’d be happy to speak with you about how to frame your position, protect your interests, and strengthen your outcome.