Startup Funding Espresso -- What Investor Docs Are Needed for Due Diligence?

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In closing an investor, you’ll need to provide basic documents about the business to prospective investors for their due diligence. 

There are several key documents you need for your diligence box or what some call a data room.

These include:

• Income statements, balance sheets, cash flows, with assumptions outlined - this shows the current financial status of the business.
• Discussion of distribution channels as the investor wants to know how you’ll distribute the product.
• Historical and projected headcount by function and location which is the plan for hiring.
• Summary biographies of senior management - who is currently on the team.
• Entity fillings - are you an LLC or C-Corp?
• List of material patents, copyrights, licenses, and trademarks - which is a summary of the intellectual property.
• Cap Table - who are the current owners of the stock?
• Three to five-year financial projections - what is your planned use of funds and projected outcome?

It’s best to gather these documents into one place before you launch your fundraise.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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