What kind of financial data should a company prepare when seeking Series A venture capital funding?

Kruze Consulting Startup Q&A Author
Vanessa Kruze Founder, CPA

My accounting firm’s clients have raised over $500 million in venture capital and seed funding in the past 12 months, so we’ve seen a lot of financial data requests from venture capitalists.

We recently compiled a list of the most common diligence requests (again, only for financial, tax and HR due diligence). Here are some of the most common items, and I’ll share a link to the full diligence list at the end of this response.

Common Financial Diligence Items

  • Past 3 year financial statements (income statement, balance sheet, cash flow)
  • Bookings history (if it applies to your startup)
  • 3 to 5 year projections, usually by month (cash position is an important item they want to see projected)
  • Top 10 client invoices and contracts (only matters for b2b companies)
  • Material contracts with vendors/suppliers
  • CAC (customer acquisition costs - they may have a particular way they want to see this)
  • Customer LTV
  • Customer churn rate (assuming this applies to your startup)

Due Diligence Checklist

You can see the full due diligence full here - it includes tax and HR diligence requests, in addition to the financial questions VCs ask.

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