Useful for startup founders seeking to fundraise from external investors and angel investors who want to thoroughly review an early stage investment opportunity
Seed/Series A due diligence checklist - clutch play advisors jan2020
1. Remote Executive Assistant
Due Diligence Checklist
CLUTCH PLAY ADVISORS
www.clutchplayadvisors.com
Early Stage Advisory & Administration
2. “Build relationships, add value
and move the needle”
Remote Executive Assistant
- We focus on allowing you to focus!
👨💼 12 years finance professional with significant startup experience at your
service
- helped more than 100 startups across Europe and the US raise +25Mln
We help you organize your critical business functions. Follow-up with key sales,
fundraising contacts and networking efforts. Research markets and upcoming
trends. 🎯
"Human connections that build relationships, add value and move the needle"
#getintouch for more details 👍 - adriangalea@clutchplayadvisors.com
3. “Build relationships, add value
and move the needle”
Remote Executive Assistant
- Responsibilities, for startups
● organisation of due diligence room and ensures latest updates are available
● CRM: investor leads and fundraising follow-up
● Research and preparation of responses and supplementary information
● Pitching event and meeting scheduling
4. “Build relationships, add value
and move the needle”
Remote Executive Assistant
- Responsibilities, for investors
● Follow up correspondence with co-investors and community
● Follow up correspondence with target startups
● Investor attends in-person, face-to-face meetings whilst we read, review and
ensure all information reported is matched to the due diligence documents
● Schedule and plan events, speaking opportunities and meeting scheduling
5. “Build relationships, add value
and move the needle”
Stages in a Due Diligence
Pre-Marketing leave behinds
Non-confidential pitch deck your business narrative
solution/market fit
Key metrics
Market briefing
team
Executive summary
Website
Product explainer video or
document
Especially for technical startups
6. “Build relationships, add value
and move the needle”
Stages in a Due Diligence
Fundraising tour companions
Pitch Deck use a system that allows you to track
opens and how readers spend their
time on the deck
2-3 page financials Show your metrics that matter
7. “Build relationships, add value
and move the needle”
Stages in a Due Diligence
Due Diligence Room
● GDrive/DropBox
● Layered according to confidentiality
● Any highly confidential material, must be labelled accordingly and password
protected!
1. Team
Resume of key staff
Employee service agreement
Freelancers/contractors service agreement
ESOP plan
Google background checks
Reference background checks, police conduct
reports
2. Sales & Marketing
Business strategy documents
Brand identity strategy
Sales Pipeline or CRM reports
Copies of campaigns and relevant metrics
Customer feedback and surveys
Competitive landscape
Market reports (third party reputable firm)
8. “Build relationships, add value
and move the needle”
Stages in a Due Diligence
Due Diligence Room (cont…)
3. Operations & IP
OKRs or similar SMART goals
IP/Tech - Product literature
IP filings
Freedom to Operate
Trademarks and copyrights
4. Financials
Business drivers and key KPIs
Metrics that matter
Up to 3 years financial reports
Financial forecasts
Financial budget for the year - with variance
analysis
5. Legal & Governance
Founding documents and Company statutes
Certificate of incumbency / good standing
Board of Directors CVs and governance setup
Copies of board & shareholder resolutions
Risk management matrix
If regulated, key licenses and reports filed
Insurances and permits
6. Investor Relations
Cap Table
Subscription Agreement
Term Sheet
Shareholders Agreement
Shareholder resolutions
Profile of key investors & advisors
9. “Build relationships, add value
and move the needle”
Due Diligence Checklist - FAQ
● Are all these documents necessary?
○ The majority are documents that are legally required for any company to exist
○ Other documents are strategy-based and startups should show how they set objectives
and measure their performance accordingly
● Can I start meeting investors and then prepare the due diligence room once I
have interest?
○ Momentum is critical in fundraising. Once you have an interested investor, ensure you
keep that engagement going. Long-waiting periods can kill interest.
○ Once a key investor says yes, other co-investors will follow. Many times an experienced
investor will recommend a deal to trusted co-investors
● As the CEO, during fundraising I am too busy to keep up correspondence.
What should we do?
○ The CEO needs a team, divided as follows:
■ CEO - 80-90% of full time - does all the pitching and investor meetings
■ Assistant to the CEO, to ensure follow-up and flow of information
■ CFO/CTO - part-time - to contribute technical input as needed
