Administration
~5 minutesData Room Checklist
Due diligence readiness
0/20 documents ready
Each investor has its own appraisal requirements; This list is just a general framework.
How this tool helps and the terms you need to know
When to use this tool
- When preparing data for capital calling documents.
- When you need a quick estimate before discussions with investors.
- When preparing a submission to the Fund or to support programmes that require proof of legal and financial standing.
Basic calculation
Step 1 — Open each of the seven document groups in turn, from Corporate through to Compliance. Step 2 — Tick the items for which the business holds a complete, current version ready to share. Step 3 — Track the readiness rate of each group to identify which one is the bottleneck. Step 4 — Assign an owner and a deadline to every item still outstanding.
Only tick an item once the document is complete and still valid. Drafts, unsigned documents and outdated figures should be treated as not ready. The rate for each group matters more than the overall rate, because a single incomplete group is enough to slow the whole due diligence process even when every other group is complete.
Example: A business has complete financial statements and customer contracts but has not updated its cap table since the most recent funding round. The overall rate still looks high, yet the Corporate group is missing a foundational document — and that is typically among the first items asked for in an opening meeting.
Terms used in this tool
- Data roomVirtual data room
- An online repository holding the company's documents, with access granted to investors during due diligence. Documents should be named and arranged in a consistent folder structure so the reviewing party can navigate them easily.
- Due diligenceDue diligence
- The process by which investors verify the information a business has provided across legal, financial, tax, personnel, technology and commercial matters. It typically runs from several weeks to several months depending on the size and complexity of the deal.
- Cap tableCap table
- A table listing every shareholder, their share count and corresponding ownership percentage, including employee allocations and instruments convertible into shares in future. It is usually the first document investors cross-check.
- Audited financial statementsAudited financial statements
- Financial statements confirmed by an independent auditor as true and fair. Early-stage businesses not yet subject to mandatory audit may provide reviewed statements or statements prepared by an accounting service provider, together with detailed ledgers.
- Material contractsMaterial contracts
- Contracts with a significant bearing on operations or revenue: agreements with major customers and key suppliers, leases, loans and long-term commitments. Reviewers pay particular attention to termination, exclusivity and change-of-control clauses.
- IP & legal complianceIP & legal compliance
- The set of documents proving the business genuinely owns its technology and brand — trademark and patent registrations, IP assignment agreements with staff and partners — together with evidence that it operates in line with licensing requirements, tax obligations and data protection rules.
How to read the results
Below 50% of documents
The file is not ready for due diligence. Prioritise completing the Corporate and Finance groups, as these are the two requested earliest in most transactions.
Between 50% and 80%
The business can begin conversations with investors while completing the remaining items in parallel. Draw up a list of owners with specific deadlines for each outstanding document.
Above 80% of documents
The file is in a reasonably ready state. The next step is to arrange documents in a consistent folder structure, check that they are current, and set up access permissions before sharing.
Founder's Toolkit