How should a startup raising VC on the verge of terms sheets prepare for the due diligence process? What documents should be included?

A lot of things need to be done to prepare for the due diligence process and some of the other answers provide you with some ideas. Put simply, though, at this stage, a VC will want a thorough look at your startup before investing to try to determine whether such investment will provide a return. So, you’ll want to be able to provide them with a thorough look at your business through your business plan.

Your plan will provide financial projections, market analysis, product descriptions, and general strategies, among other things. Also, there will likely be other documents outside of the business plan that need to be provided. Things like intellectual property assignment or employment agreements are some examples.

An exact checklist is hard to define and will vary based on your business, but remember that in general you are trying to provide a VC with a thorough look at your startup on paper. So, anything that is relevant to your startup needs to be documented and provided for at this stage. You don’t want to leave any surprises. Preparing your startup for the due diligence process can be tough, so I would suggest that you consult with an attorney. An experienced attorney will know what a VC is looking for and will be able to guide you in preparing the materials thoroughly and correctly.

After you are prepared for the due diligence process, I would also suggest using an attorney to draw up your terms sheets. The terms need to be tailored to your startup and an attorney will work with you to make sure that everything is provided for. In sum, an attorney who has experience working through this process can be valuable to a startup at this stage. If you are looking for an attorney to help you with the due diligence process, you should check out LawTrades where we will match you with an experienced attorney for a free, no-obligation consultation.

A lot of things need to be done to prepare for the due diligence process and some of the other answers provide you with some ideas. Put simply, though, at this stage, a VC will want a thorough look at your startup before investing to try to determine whether such investment will provide a return. So, you’ll want to be able to provide them with a thorough look at your business through your business plan.

Your plan will provide financial projections, market analysis, product descriptions, and general strategies, among other things. Also, there will likely be other documents outside of the business plan that need to be provided. Things like intellectual property assignment or employment agreements are some examples.

An exact checklist is hard to define and will vary based on your business, but remember that in general you are trying to provide a VC with a thorough look at your startup on paper. So, anything that is relevant to your startup needs to be documented and provided for at this stage. You don’t want to leave any surprises. Preparing your startup for the due diligence process can be tough, so I would suggest that you consult with an attorney. An experienced attorney will know what a VC is looking for and will be able to guide you in preparing the materials thoroughly and correctly.

After you are prepared for the due diligence process, I would also suggest using an attorney to draw up your terms sheets. The terms need to be tailored to your startup and an attorney will work with you to make sure that everything is provided for. In sum, an attorney who has experience working through this process can be valuable to a startup at this stage. If you are looking for an attorney to help you with the due diligence process, you should check out LawTrades where we will match you with an experienced attorney for a free, no-obligation consultation.

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[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
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[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]