Due diligence is the investor checking that what you've said is true and that there are no hidden problems. For early rounds it's usually light, but missing documents can delay a deal by weeks. Set up a shared folder (a data room) before you start raising.
Company
- Registration documents, articles of association and current register extract.
- Cap table: who owns what, including options, SAFEs and notes.
- Shareholders' and co-founder agreements, with vesting terms.
- Board and shareholder decisions.
Intellectual property
- Proof that the company owns all code, designs and content (IP assignments from founders, employees and freelancers).
- Trademark and patent filings.
- Domain names and key accounts registered to the company.
- List of open-source licences used in your product.
Money
- Financial statements and the latest bank balance.
- Monthly revenue and costs, and a simple forecast.
- Tax registrations and filings, no unpaid taxes.
- Loans, grants and any obligations attached to them.
Customers, team and legal
- Key customer and supplier contracts.
- Employment and freelance contracts.
- Privacy policy and how you handle personal data (GDPR in Europe).
- Any disputes, claims or legal risks.
The most common early-stage problem is unclear IP: a former co-founder or freelancer who never signed over their work. Fix it before you raise.