Raising money
Due diligence
Due diligence is the check an investor or buyer runs on your company before a deal closes, confirming your finances, legal setup, ownership and the claims in your pitch.
Also called diligence, DD
It usually starts after a term sheet (the short summary of the deal's main terms) is signed and before the final documents close. An agreed deal can still fall apart here. Early checks cover a short list, while later rounds and sales of the company cover far more.
This is not legal or tax advice, check with a lawyer or accountant.
When this shows up
Example, not a real founder: an investor's lawyer asks for proof that your company owns its code. A freelancer built the first version, and there is no signed agreement handing over the rights. The deal pauses while you track them down.
What to do next
List the documents an investor will ask for: the papers that formed the company, your cap table, contracts, and proof you own your code. Mark each one you cannot find today.
Go deeper
Due diligence checklist for an early startup. What angels ask
A checklist ordered by what is most likely to stall a deal, with a status and a reason for each item.
Read the guideOr go straight to the tool