🚀 Attention startup founders! Navigating finance due diligence can be tricky, but we've got you covered. Our team, which has helped startups raise over $15 billion in VC funding, has put together a comprehensive guide on mastering the finance due diligence process. 📊💼 From early-stage basics to detecting fraud in later rounds, we've packed it with insights you can't afford to miss. Read the full article – link in the comments of Healy Jones' original post! #StartupFunding
💼 Founders: Financial Due Diligence Evolves as You Grow Having been a VC and startup exec, I've seen how financial scrutiny changes at each stage. Here's what to expect: 🌱 Seed: Basic financial model, use of funds, burn rate, any historicals that you have, basic revenue numbers (accrual revenue!). 🚀 Series A: Detailed accrual financials, cash flow projections, unit economics. VCs dissect your projections. 📈 Series B+: Historical performance, revenue diversification, sensitivity analysis on projections. 🔑 Key areas VCs examine: +Cash burn management +Revenue recognition +Expense structure +Cap table & financing history +Operational metrics & KPIs 💡 Pro tip: Start preparing early. Engage startup-focused accountants now to set a strong foundation for later rounds. Robust financial practices aren't just for fundraising - they're crucial for scaling your business effectively. I’ve put a link to a more detailed rundown on financial diligence in the first comment: