Preview mode. Complete the step above to save, export, or generate results.
Prepare your startup for investor due diligence. Understand what investors examine, organize your documents, and avoid common red flags.
Typical Due Diligence Timeline
Week 1-2
Initial requests &
data room access
Week 2-4
Deep dive &
expert interviews
Week 4-5
Follow-up questions
& clarifications
Week 5-6
Final review
& term sheet
Pro tip: Have your data room ready BEFORE you start fundraising. Prepared founders close 2-3 weeks faster on average.
Common Red Flags Investors Look For
Messy cap table — unresolved equity disputes or missing agreements
No IP assignment — founders/contractors without signed IP transfer
Inconsistent financials — numbers that don't match across documents
Customer concentration — 50%+ revenue from one customer
Pending litigation — undisclosed lawsuits or regulatory issues
Key person dependency — no succession plan for critical roles
Tax non-compliance — unfiled returns or tax obligations
Missing contracts — verbal agreements instead of signed contracts
Inflated metrics — vanity metrics that don't reflect real traction
Data privacy gaps — no GDPR/CCPA compliance when handling user data