Money, Pricing & Model

What financial records do investors actually ask for in due diligence, and how do I avoid a scramble when a term sheet appears?

A starting point

Diligence surprises kill deals or shave your valuation, and they're almost always self-inflicted: messy cap tables, missing board resolutions, unfiled GST, or ESOP grants never documented. Keep a live data room from day one with clean financials, statutory filings, a reconciled cap table, and all contracts, so a term sheet triggers a share link, not a three-week panic. The founders who close fast are the ones whose books were always investor-ready, not the ones who cleaned up under deadline.

Go deeper

Hand-picked from around the web, each with a note on why it earns your time.

3 resources 3 link-checked Read Use

Read

📄 Article
✓ Link checked Free Intermediate

Why we picked it This is the exact list a founder gets handed once a term sheet lands, written by YC Continuity's general counsel after hundreds of financings, so it is the request list itself and not a vendor's marketing checklist. It spells out the corporate, equity, IP, and financial documents investors ask for, and it makes the core point plainly: assemble the data room before you sign, and you cut about a week off closing. Treat it as a starting point to pre-build your folders, not a legal opinion on your specific deal.

Series A Diligence Checklist

From Y Combinator Startup Library by Jason Kwon (Y Combinator) ~10 min read

  • The scramble is avoidable: having board minutes, stockholder and option lists, incorporation docs, and recent financials ready before the term sheet saves roughly a week at closing.
  • Investors want the paper trail of your equity (who owns what, at what price, on what dates), so a clean cap table and signed option agreements sit at the centre of the ask.
  • This is post-term-sheet reality, so build the folder structure now while things are calm rather than reconstructing it under a deadline.
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Use

📋 Template
✓ Link checked Free Intermediate

Why we picked it This is a ready folder structure (sections A to M covering legal, IP, employment, financials, and cap table) that you can stand up once and keep current, so your records stay investor ready between rounds instead of being rebuilt each time. It is written by someone who has sat on all three sides of diligence (founder, advisor, and VC), so the ordering matches how investors actually work through a data room. Use it as scaffolding, not gospel: seed-stage founders will legitimately have blanks, and the point is a living index you fill in over time.

Due Diligence Request List Template for Startup Fundraising

From alexanderjarvis.com by Alexander Jarvis Downloadable checklist (folders A to M)

  • Gives you a concrete data room skeleton to maintain continuously, so a term sheet triggers a share, not a scramble.
  • Organised the way investors read a data room, with a master index mapping every likely ask to a file, which is what keeps diligence from stalling.
  • Honest about stage: early startups will not have every line filled, and that is fine, the value is the standing structure.
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🛠️ Tool
✓ Link checked India Freemium Beginner

Why we picked it For Indian founders the cap table is where diligence most often gets messy (SAFEs, convertible notes, ESOP grants, and vesting all sprawling across spreadsheets), and Qapita keeps it as a single source of truth built for SEBI-compliant, audit-ready records rather than a US-only view. The free tier covers pre-seed and seed stages, so you can keep the table clean from the first grant instead of reconstructing it under term-sheet pressure. It is one credible option (EquityList is a comparable India-first alternative worth a look), so pick on price and stakeholder count, not brand.

Qapita: Cap Table & ESOP Management for Indian Startups

From qapita.com by Qapita SaaS platform

  • Keeps the cap table, ESOP grants, and vesting schedules updating in real time, so what investors see in diligence is always current.
  • Built for Indian compliance and audit readiness (SEBI-aligned records, dematerialisation), which a generic US cap table tool does not handle.
  • Free for early stages, so there is no reason to run your equity on a fragile spreadsheet that breaks the moment diligence starts.
Open qapita.com →

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