Actual VC Due Diligence Checklist
A friend of mine is a seasoned Venture Capitalist based in Austin Texas and was kind enough to share his former fund’s due-diligence checklist with me. This helped me prepare for our own fundraising and ensure we had everything in order ahead of time. I was allowed to share this list and thought it might be helpful to others - it’s great for any company, whether fundraising or not, in that it forces you to actually have a plan and your documentation, strategy and financial/legal documents in order. ENJOY!
DUE DILIGENCE CHECKLIST
Fundraising
- Detailed pre- and post-funding cap table
- Fundraising profile through exit
- Updated investor presentations and business plans
- Prior financing docs/term sheets
Business Development/Marketing and Sales
- Business development strategy (presentation)
- Detailed business development plan and targets
- Comprehensive profile of sales and marketing strategies
- Analysis of early adopters and early majority
- Comprehensive competitive and players analysis
- - Current online and offline player profiles
- - Quantitative and qualitative comparisons
- Comprehensive market sizing and segmentation
- Product roadmap
- Board books
- Client calls
Technology
- Technical audit
- Interface
- Software/hardware environment
- Development project plan
References
- Interview contacts
- Current Investors
- Individual references for key management
Organization
- Management biographies
- Organization chart through IPO
- Staffing gaps
- Timing
Legal/Documentation
- URL ownership and trademark filings
- Patent documentation
- Basic corporate documents – articles of incorporation, bylaws, etc.
- Lease agreements
- Employee confidentiality, non-disclosure, non-compete agreements
- Regulatory audit
- - Comprehensive description of all regulatory factors
- - Regulatory counsel
- Consulting agreements
- Insurance documentation
APPENDIX – DUE DILIGENCE MISC DOCS
A. Stock Options Plan and Agreement
B. Pro Forma Financials
C. Launch plan documents
D. Texas Workforce Commission Document (obviously varies depending on location)
E. Health Insurance Documents
F. Bank Statements
G. Creative Brief
H. Equipment/Asset List
I. Press Releases
J. Marketing collateral
(1 votes, average: 5 out of 5)
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