Investor investigation before a deal closes
Due diligence is the investigation and audit process investors perform before committing to a funding deal. It covers financials, legal structure, cap table, product, team, and market. Founders should be prepared for 4–12 weeks of scrutiny.
During Series A due diligence, a VC might request 3 years of financials, customer references, a full cap table, all legal contracts, and a technical architecture review.