Being organized as an early stage startup is a top priority. For those startups at Seed stage raising money, this is a helpful guide of the steps and documents you could have prepared in advance-- helps your company, helps investors! Learn more about how we help founders tilden.ai

1. SAMPLE DILIGENCE CHECKLIST
List of items expected from a startup raising 2MM-7MM and founder prep time
1st
Meeting until round close average: 3-6 months
PRIMARY DILIGENCE Est. Cost Prep Duration
Financial Model (24 months) 0-5,000 1 week
Pitchdeck 0-1,500 4-5 days
Use of Proceeds (spend of fundraise) 1 week
Beta Users or Signups (if applicable)
Vibe Check (investor fit?) 0
Current Cap Table (of Equity) 0-5,000
TECHNICAL DILIGENCE Est. Cost Prep Duration
Inspection of technology or code 1-3 weeks
Customer or references diligence 1-2 weeks
Competition Research 1 week
EQUITY DILIGENCE Est. Cost Prep Duration
Review all agreements with Equity 1-2 weeks
Calculate Pre and Post Cap Table 1 week
Investment Termsheet 1-3 weeks
Investment Documents Prep 0-50,000 1-2 weeks
Investment Documents Signed 3-7 weeks
COMPANY DILIGENCE Est. Cost Prep Duration
Terms and Conditions (beta + web) ? 4-5 days
Corporate government # Setup 0-1,000 1-2 weeks
Operating Agreement 500-2,000 1 day
Articles of Incorporation 500-2,000 1 -2 weeks
Bank Account verified 0 1 day
It will take 8-12 weeks from initial meeting for round close assuming all sides organized
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2. TIPS FOR VC DILIGENCE
Below are some tips and things to consider when in a funding round for your startup.
PRIMARY DILIGENCE
In initial diligence, investor will be checking for basics like business model, team and if
you have a plan for fundraising. Most startups will have similar numbers or templates
for their budgets at this point. The purpose in this stage is to find investors excited
about your product
• Short and Sweet. Make sure to have a fast and clear way to describe your
mission, product and expectations with investor monies
• 10 Slides or less. You should have a simplified version of your deck for
customers or investors and should be done efficiently
• See if there’s a personality fit. Investors are relationships that are long term
even at the earliest of startup stages. Be yourself.
TECHNICAL DILIGENCE
This depends on your product especially if a software or hardware company. This is
where investors check to see if your product is real, and what it would take if someone
else tried to copy the same idea
• Have logins and product items ready. You should have a folder, location,
demo, something easily accessible
• Know your traction. Sales, users or customers, however you measure your
startup you should know these numbers and up to date at all time
• Know your competition. It is always a bad sign if an investor finds a major
competitor you do not know about
EQUITY DILIGENCE
Everytime a startup raises money they are likely giving up 10-30% equity at a time.
When a funding round is done, especially for millions, the main investors will want to
make sure the “cap table is clean” meaning that % of equity of the founders and
everyone involved makes sense. Below is an example breakdown
Role % Equity
Founders (all) 50%
Advisors (all) 4%
Invesors 20-30%
Employees (reserved) 10%
ABOUT US. Tilden.ai helps startups be organized for venture capital