Due Diligence Checklist: What Investors Will Ask For

The short answer: Investors will ask for your corporate records, financial statements, contracts, cap table, intellectual property documents, customer information and details of your team and technology. Gather them in an organized data room before you start raising, so diligence supports your story instead of slowing the deal.

Why diligence matters

Due diligence is how an investor verifies what you have told them. It is normal, and it happens on almost every financing. A well-prepared company moves faster and signals that it is run professionally. Gaps or surprises, even small ones, can delay a closing or lower an investor's confidence.

Corporate and legal

• Certificate of incorporation, articles, by-laws and amendments
• Minute books, board and shareholder resolutions
• Current cap table, share register and any option plan
• Shareholder agreements, convertible notes and prior financing documents
• Any litigation, disputes or regulatory matters

Financial

• Historical financial statements and current management accounts
• Your financial model and its assumptions
• Bank and debt arrangements
• Tax filings and confirmation that obligations are current
• Details of government grants or tax credits you have claimed

Commercial

Expect requests for customer lists, key contracts, pricing, pipeline and retention information, along with supplier agreements. Investors may speak with a few customers, so tell yours in advance. For data center and power projects, add site control, permits, interconnection and energy supply documents, and any offtake or customer commitments.

Intellectual property and technology

Show that the company owns what it claims to own. That means assignment agreements from employees and contractors, registered trademarks or patents where relevant, and a list of open source and third-party software you depend on. Be ready to describe your architecture, security practices and any data privacy obligations.

People

Provide an organization chart, employment and contractor agreements, option grants and key person details. Investors want to know who is critical and whether they are committed.

How to run the process

Build the data room early, with clear folders and consistent file names. Review it as an outsider would. Fix gaps, and disclose known weaknesses before the investor finds them. Respond to requests promptly and keep a log of what has been shared. Your lawyer and accountant can help you prepare and review the documents, and you should speak with a qualified lawyer before sharing sensitive materials.

Common mistakes

• Starting to collect documents only after a term sheet arrives
• Leaving old agreements unsigned or missing
• Giving different answers in the data room and in meetings
• Sharing a cap table that does not match the share register

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Launch Capital is a Toronto venture capital firm and family office that provides growth capital to Canadian technology companies. Our team is made up of operators who have built and exited companies. Send us your pitch. It takes two minutes and no deck is required.