Tags
Due Diligence
File
Checklist
Files & media
Company Legal Structure
- Is the entity incorporated as a private limited company in India?
- Have necessary corporate permissions/licenses been obtained?
- What class of shares have been issued? Any preferences?
Cap Table Structure
- Who are the founders, co-founders and management team? How much equity does each hold?
- Have founders entered into vesting agreements? Cliff and vesting schedule?
- Who are the other equity shareholders (advisors, employees, institutional investors etc.) and their stake?
Shareholder Agreements
- Is there a Shareholder Agreement and SHA terms acceptable?
- Are there any special rights/privileges granted to investors like information, voting, board seat, liquidation preference etc.?
- Is there a restricted list of business decisions requiring investor approval?
ESOP Structure
- Is there an employee stock option plan (ESOP) in place? What is the unallocated ESOP pool?
- What is the vesting schedule for employee stock grants? Is there an early exercise option?
Board Structure
- What is the current board composition? How many founder directors vs independent directors?
- Are board/shareholder meeting procedures defined? Quorum requirements?
- How are appointments to the board managed?
Fund Raise Process
- Has the startup raised convertible instruments like SAFE, which convert in next round?
- Are past fundraising agreements acceptable? Do they need amendments?
- Are financial statements and cap table audited as per local regulations?