Series A Diligence Checklist : YC Startup Library | Y Combinator

Due Diligence Checklist: Complete 50+ Due Diligence Documents

Tips and tricks

• According to a report by CB Insights, lack of due diligence is one of the top reasons why startups fail.
• There are different types of due diligence: financial, legal, product, and technical.
• The type and duration of due diligence depends on the stage (pre-seed/seed/Series A), sector (SaaS/DeepTech), and type of investor (angel/VC).
• Naturally, the process slows down or comes to a halt entirely, if irregularities arise during this process. At a minimum, the process takes 2-3 weeks and could extend up to 2 months.
• Due diligence is not just important for investors, but also for startups themselves, as it can help them identify and address weaknesses in their business operations and prepare for potential investment or acquisition opportunities.
• The best way to be prepared for due diligence and provide information to investors quickly and conveniently is to build a Data Room on Google Sheets. Founders should build it before starting to raise money.
• Avoid investors who require a lot during due diligence in the early stages. Typically, the pre-seed stage is about the team, the seed stage is about the product, and the Series A stage is about traction.

Checklist

Team

• [ ] List of founding team members with the following data:
  • [ ] Role
  • [ ] Key responsibilities
  • [ ] Background
  • [ ] Size of salary
  • [ ] Linkedin
  • [ ] Twitter
  • [ ] Personal email
  • [ ] Working email
  • [ ] Current location
  • [ ] Refer to people who can provide feedback about you, such as former colleagues or partners
• [ ] List of employees with the following data:
  • [ ] Role
  • [ ] Key Responsibilities
  • [ ] Contract
  • [ ] Size of salary
  • [ ] Linkedin
  • [ ] Working email
  • [ ] Current location
• [ ] Organization chart

Equity

• [ ] Shareholders Agreement
• [ ] Capitalization Table