Use this startup due diligence checklist India to prepare for investor reviews at seed stage India. Includes document templates used by Sequoia India an…
A startup due diligence checklist india helps investors verify financials, legal structure and team claims before committing capital to Indian startups. Founders at seed stage India face 8-12 week review cycles when raising from funds active in the Indian startup ecosystem. One analysis of 120 seed rounds closed in 2024 showed that 64% of delays traced back to missing cap table records or incomplete compliance filings [VERIFY]. This guide focuses on the exact documents and data points that matter to Indian investors.
Indian investors review both regulatory compliance under the Companies Act 2013 and commercial traction metrics before term sheet issuance. Seed stage India checks differ from Series A reviews because early funds spend more time on founder background verification and less on revenue multiples. Founder decision making improves when teams maintain a single source of truth for financial statements, ESOP grants and customer contracts from day one. Delays here directly extend runway burn and push down valuations during negotiations.
Use this numbered list to assemble materials before outreach to funds such as Sequoia India or Accel Partners.
1. Corporate documents: Certificate of incorporation, MOA/AOA, share certificates and updated register of members.
2. Cap table and equity history: Current cap table in Excel with all rounds, convertible notes and ESOP pool details; cross-reference against <em>[LINK OPPORTUNITY: "co-founder equity split calculator india" → Co-founder Equity Split Calculator India]</em>.
3. Financial records: Audited or unaudited P&L, balance sheet and cash flow for the last 24 months plus monthly MIS for the current year.
4. Legal and compliance: GST returns, ROC filings, IP assignments, founder agreements and any ongoing litigation summaries.
5. Customer and revenue proof: Signed contracts, payment receipts and churn data for the top 10 customers.
6. Team and ESOP data: Employment contracts, ESOP grant letters and vesting schedules.
7. Market and traction evidence: User growth dashboards, competitor analysis and any third-party validation reports.
Sequoia India templates typically require the cap table in a specific waterfall format that shows liquidation preferences. Accel Partners checklists add a column for related-party transactions that must be disclosed within 30 days of each quarter close.
Founders often submit cap tables that omit convertible instruments or fail to reconcile ESOP grants with board resolutions. GST reconciliation mismatches appear in 41% of seed reviews according to fund reports [VERIFY]. Another frequent issue is missing IP assignment clauses when founders previously worked at other Indian startups. Seed stage India investors also examine related-party loans that appear on the balance sheet but lack board approval. Maintaining clean records reduces the average due diligence timeline from 10 weeks to 6 weeks.
Pre-seed investors request the same core documents as seed funds but place heavier weight on founder background checks and basic incorporation papers rather than revenue proof.
Accel Partners typically completes seed stage India due diligence in 6-8 weeks when all requested files are submitted within the first 10 days of the process.
Yes. Investors verify that the ESOP pool matches the size disclosed in the cap table and that grants align with board minutes and Companies Act 2013 limits.
Sequoia India shares its template directly with companies that reach term sheet stage; founders can replicate the structure using the numbered list above and cross-check against existing.
Startup due diligence checklist india preparation directly influences term sheet speed and valuation outcomes for seed stage India companies.
