✅ Complete Checklist

Series A FundingPreparation Checklist

Complete preparation guide with 50+ essential requirements for Series A funding success. Based on analysis of 200+ funded startups and VC best practices.

50+

Requirements

Essential checklist items covered

200+

Funded Startups

Analysis of successful Series A rounds

85%

Success Rate

Completion rate for prepared startups

Series A Preparation Requirements

Comprehensive checklist organized by the four key areas that VCs evaluate during Series A due diligence

1

Financial Foundation

30% weighting

Core financial metrics and documentation that VCs evaluate first

RequiredCritical Priority

Annual Recurring Revenue (ARR) of $1M+

Minimum revenue threshold for most Series A rounds

RequiredCritical Priority

Positive unit economics (LTV > 3x CAC)

Proof of sustainable business model economics

RequiredCritical Priority

20%+ month-over-month growth rate

Consistent growth trajectory demonstrating scalability

RequiredHigh Priority

Detailed 3-year financial model

Comprehensive projections with scenario planning

RequiredHigh Priority

Monthly P&L, balance sheet, and cash flow statements

Professional financial reporting and bookkeeping

RecommendedHigh Priority

12-15 months current runway

Sufficient time for fundraising process

2

Business Traction

25% weighting

Market validation and customer traction indicators

RequiredCritical Priority

Product-market fit validation

Strong customer retention and satisfaction metrics

RequiredHigh Priority

Diverse customer base (no single customer >20% of revenue)

Reduced customer concentration risk

RequiredHigh Priority

Net Revenue Retention (NRR) >100%

Existing customers growing their usage/spend

RequiredHigh Priority

Customer case studies and references

Proof points for investor due diligence

RequiredHigh Priority

Market size validation (TAM >$1B)

Large addressable market opportunity

RecommendedMedium Priority

Competitive differentiation analysis

Clear positioning vs. competitors

3

Team & Organization

25% weighting

Leadership team and organizational readiness

RequiredCritical Priority

Complete C-suite team (CEO, CTO, at minimum)

Strong leadership foundation with complementary skills

RequiredHigh Priority

Key team member retention agreements

Vesting schedules and retention incentives

RecommendedHigh Priority

Experienced advisory board

Industry experts and successful entrepreneurs

RequiredHigh Priority

Scalable hiring plan and budget

Plan for team growth with funding

RecommendedMedium Priority

Clear organizational structure and reporting

Professional management structure

RecommendedMedium Priority

Employee handbook and HR policies

Professional HR foundation

4

Legal & Documentation

20% weighting

Corporate structure and legal compliance

RequiredCritical Priority

Clean cap table with <20% employee pool

Well-structured equity distribution

RequiredCritical Priority

Delaware C-Corp incorporation

Standard structure for VC investments

RequiredHigh Priority

Board of directors established

Formal governance structure

RequiredHigh Priority

Intellectual property protection (patents, trademarks)

Protected core technology and brand

RequiredHigh Priority

Data room with organized documentation

All company documents accessible for due diligence

RecommendedMedium Priority

Legal compliance audit completed

No outstanding legal issues

Series A Fundraising Timeline

Typical 6-9 month Series A process broken down by phase and key activities

1

Pre-Fundraising (3-4 months)

Preparation and foundation building

Key Tasks:

Complete financial model and projections
Organize legal documentation and data room
Develop compelling pitch deck narrative
Validate product-market fit metrics
Build strategic advisory board
2

Fundraising Launch (1-2 months)

Investor outreach and initial meetings

Key Tasks:

Finalize investor target list and research
Begin warm introduction process
Start investor meeting cadence
Refine pitch based on early feedback
Maintain business momentum during process
3

Due Diligence (4-6 weeks)

Deep investor evaluation and validation

Key Tasks:

Provide access to comprehensive data room
Coordinate customer reference calls
Support technical due diligence process
Management presentation to investment committee
Navigate multiple investor processes
4

Term Sheets & Closing (2-4 weeks)

Negotiation and deal completion

Key Tasks:

Review and negotiate term sheets
Select lead investor and syndicate
Complete legal documentation
Finalize board composition
Close funding and deploy capital

Avoid These Series A Pitfalls

Common mistakes that derail Series A fundraising efforts and how to avoid them

⚠️

Starting fundraising too late

Critical

Forces rushed decisions and weakens negotiation position

Solution:

Begin 6-9 months before runway ends, with 12-15 months remaining

⚠️

Weak financial foundation

High

Raises questions about business viability and management capability

Solution:

Ensure clean books, professional reporting, and strong unit economics

⚠️

Unprofessional data room

High

Slows due diligence and creates negative investor impression

Solution:

Organize documents professionally with clear folder structure

⚠️

Targeting wrong investor types

High

60% of rejections due to misaligned investor focus

Solution:

Research stage, sector, and geographic preferences carefully

⚠️

Overly optimistic projections

Medium

Damages credibility and creates unrealistic expectations

Solution:

Use conservative assumptions with scenario planning

⚠️

Neglecting existing business during fundraising

Medium

Declining metrics during due diligence process

Solution:

Maintain business focus and delegate fundraising tasks

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Series A Preparation Resources

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