After we have both executed the Term Sheet, we will finalize all the investment documents and complete our final due diligence. If we are leading the round, we will use our template to generate a complete set of investment documents that matches the term sheet, then you and your counsel can review them. We've worked with many major law firms on investments using our template, so this task should proceed smoothly.

Final due diligence has four major categories, each with it's own checklist:

  • Corporate. We will make sure that all your corporate paperwork is valid and up-to-date. Such paperwork includes your Delaware Certificate of Incorporation, Corporate Bylaws, and Stockholder/Board Meeting Minutes.
  • Financial. We will make sure that we have an official, up-to-date capitalization table as well as your most current financial statements. We will also reconcile them with your tax returns and bank statements.
  • Founders and Human Resources. We will gather detailed information on each founder so that we can perform background checks. We will also request a list of all current and former team members, then verify that there is an appropriate contract between the company and each team member.
  • Miscellaneous. We will thoroughly explore any other significant issues. Examples include verifying user metrics, reviewing major customer contracts, and validating intellectual property claims.

Document Preview

If you want an early look at our template investment documents, don't worry. We make them available as soon as we enter the the Pre-Term Sheet phase.