Fundraising Guide

Due Diligence Survival Guide

What VCs Actually Look For (And How to Ace It)

Due diligence kills deals. Not because companies are doing anything wrong, but because they're not prepared. Here's how to survive the process.

Financial Due Diligence

✓ 24 months of P&L, balance sheet, cash flow

✓ Revenue recognition policy documentation

✓ MRR/ARR reconciliation and bridge

✓ Cohort analysis by customer segment

✓ Deferred revenue schedule

✓ Expense breakdown by department

✓ Customer list with contract values

✓ Revenue concentration analysis (top 10 customers)

✓ Churn analysis with reasons

✓ Sales pipeline and conversion metrics

✓ Customer acquisition channels breakdown

✓ Pricing history and strategy

✓ Cap table with all instruments

✓ All prior funding documents

✓ Material contracts (customers, vendors, partners)

✓ IP assignments and ownership docs

✓ Employee agreements and option grants

✓ Any litigation or disputes

✓ Revenue recognition issues or restatements

✓ Cap table messiness (SAFEs, wrong valuations)

✓ IP ownership questions (contractor issues)

✓ Customer concentration > 30% in one customer

✓ Undisclosed liabilities or legal issues

✓ Metrics that don't reconcile

More Resources

What You Need Before You Start Raising

The Model That Gets You Funded

How to Keep Your Investors Happy (And Get More Money Later)

We've helped 50+ companies through due diligence. We know what investors look for and where deals die. Let's make sure you're bulletproof.