Ensure your startup is fully prepared before approaching investors.
Fundraising Readiness Checklist
Before you approach investors, you need to be thoroughly prepared. This checklist covers everything from documents to metrics to ensure you make the strongest possible impression.
Legal & Corporate Readiness
[ ] Company is incorporated as a Private Limited Company
[ ] All statutory registrations are complete (PAN, TAN, GST, PF, ESIC)
[ ] DPIIT Startup Recognition obtained
[ ] Company has a clean cap table with no disputes
[ ] All founder agreements are signed and filed
[ ] IP assignments from founders to company are complete
[ ] Employment agreements with key employees are in place
[ ] No pending legal disputes or litigation
[ ] Board minutes are up to date
[ ] Annual ROC filings are current (AOC-4, MGT-7)Financial Readiness
[ ] Books of accounts are up to date and audited
[ ] Bank statements reconciled with books
[ ] Tax returns filed for all completed years
[ ] GST returns filed and up to date
[ ] Clear understanding of monthly burn rate
[ ] Runway calculated (months of cash remaining)
[ ] Revenue recognized correctly (especially for SaaS: MRR, ARR)
[ ] Unit economics documented (CAC, LTV, gross margin)
[ ] Financial projections for 3 years prepared with clear assumptions
[ ] Historical MIS (Management Information System) reports availableProduct & Traction Metrics
[ ] Key metrics dashboard is set up and accessible
[ ] Month-over-month growth rate calculated
[ ] Retention and churn metrics trackedFor SaaS startups:
[ ] MRR / ARR tracked
[ ] Net Revenue Retention calculated
[ ] Churn rate (logo and revenue churn)
[ ] Average contract value documented
[ ] Payback period calculatedFor marketplace/consumer startups:
[ ] GMV / transaction volume tracked
[ ] Take rate documented
[ ] DAU / MAU and engagement metrics
[ ] Repeat usage ratesFor all startups:
[ ] Customer acquisition cost (CAC) by channel
[ ] Customer lifetime value (LTV)
[ ] LTV:CAC ratio (target: 3x or higher)
[ ] Revenue or usage growth chart (hockey stick preferred)Pitch Materials
[ ] Pitch deck (15 slides max) is ready and reviewed
[ ] Executive summary (1-2 pages) for email intros
[ ] Financial model in Excel/Google Sheets
[ ] Data room set up with all documents organized
[ ] One-pager for quick sharing
[ ] Product demo or video walkthrough readyData Room Essentials
Organize these in a secure folder (Google Drive or dedicated data room tool):
Corporate Documents:
Certificate of Incorporation
MOA and AOA
Shareholder agreements
Board resolutions
Cap tableFinancial Documents:
Audited financial statements
Management accounts (last 12 months)
Bank statements (last 12 months)
Tax returns
Financial projections and modelLegal Documents:
All contracts with key customers
Vendor agreements
Employment agreements
IP registrations (patents, trademarks)
DPIIT recognition certificateProduct & Business:
Product roadmap
Customer testimonials or case studies
Key metrics dashboard
Marketing and growth strategy documentInvestor Targeting
[ ] List of 30-50 target investors researched
[ ] Each investor's thesis, portfolio, and check size verified
[ ] Warm introductions identified for top 15-20 investors
[ ] CRM or spreadsheet set up to track conversations
[ ] Follow-up cadence planned (no more than 1 follow-up per week)Founder Readiness
[ ] Practiced the pitch at least 10 times
[ ] Prepared answers for tough questions (competition, market size, margins)
[ ] All co-founders aligned on valuation expectations
[ ] Clear understanding of how much to raise and at what terms
[ ] Willing to accept that the process takes 3-6 months typicallyCommon Pitfalls
Starting fundraising before having enough traction
Approaching investors without warm introductions
Not knowing your metrics cold
Raising too little (less than 18 months runway) or too much (unnecessary dilution)
Not having a data room ready when investors ask for it
Sending the same generic pitch to every investor
Underestimating the time commitment (fundraising is a full-time job)