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

My accounting firm’s clients have raised over $1 billion in venture capital and seed funding in the past 12 months, so we’ve seen a lot of financial data requests from venture capitalists. And, in the current funding environment, requests are becoming more expansive and detailed. 

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) - hopefully your accountant has easy access to these
• 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)

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