Venture capital due diligence checklist
Six stages, eighteen checks. For each one: what to verify, the evidence that actually answers it, and how The VentureIQ AI automates the work. Use it as a manual checklist, or run the same structure automatically against a live deal.
Analytical research, not financial or legal advice. Confirm regulated items with your own counsel.
Stage 01
Market validation
Establish that the market exists, is reachable, and is large enough to justify venture returns.
| Check | Evidence that answers it | How VentureIQ automates it |
|---|---|---|
| Bottom-up TAM, SAM and SOM built from unit counts and pricing, not a top-down percentage of an industry report | Customer counts, pricing pages, published industry data with retrievable sources | Market intelligence engine builds each layer and labels every input Verified or Estimated |
| Demand signals independent of the founder's narrative | Search demand, community discussion, waitlists, letters of intent, pilot contracts | Demand analysis harvests public signals and links each one to its source |
| Timing rationale: what changed recently that makes this possible now | Regulatory change, cost curve shift, platform availability | Specialist market analyst is asked to name the catalyst or record its absence |
Stage 02
Competition and defensibility
Map who else serves this need today and whether an advantage can be held after they respond.
| Check | Evidence that answers it | How VentureIQ automates it |
|---|---|---|
| Named direct competitors, indirect substitutes and the status quo workaround | Live product sites, pricing, funding history, review platforms | Competitive intelligence engine scores threat level and plots positioning |
| Moat assessment across network effects, switching costs, data, distribution and regulation | Contract terms, integration depth, proprietary datasets, exclusive channels | Moat analysis rates each dimension and flags the ones scored on assumption alone |
| Copy test: how quickly a funded incumbent could replicate the offer | Build complexity, data requirements, distribution barriers | Steal-this-idea engine scores replication vulnerability |
Stage 03
Team and execution
Judge whether this specific team can deliver this specific plan.
| Check | Evidence that answers it | How VentureIQ automates it |
|---|---|---|
| Founder-market fit and prior relevant delivery | Track record, references, domain history | Diligence questionnaire generates the gaps it cannot verify and keeps them open |
| Coverage of critical functions and identified key-person risk | Org chart, hiring plan, equity split, vesting | Risk engine scores execution risks on likelihood and impact |
| Delivery plan with milestones tied to the capital being raised | Roadmap, resourcing plan, historic delivery against past milestones | Development viability score rates buildability against the stated plan |
Stage 04
Product and technology
Separate what is built and used from what is described in the deck.
| Check | Evidence that answers it | How VentureIQ automates it |
|---|---|---|
| Current build state: concept, prototype, MVP in use, or revenue-generating product | Live demo, usage data, deployment history | MVP analysis maps scope to the shortest credible path to a testable product |
| Technical dependency and platform risk | Third-party APIs, model providers, single-vendor infrastructure | Technical analyst records dependencies as explicit risks |
| Data protection, IP ownership and compliance obligations | IP assignments, processing agreements, regulatory scope | Regulatory analyst and red-flag rules surface missing coverage |
Stage 05
Financial modelling
Test whether the unit economics and the plan survive contact with realistic inputs.
| Check | Evidence that answers it | How VentureIQ automates it |
|---|---|---|
| Unit economics: gross margin, CAC, payback period, retention and contribution per customer | Cohort data, invoices, payment processor exports | Financial viability module builds a 60-month ledger and flags unsupported inputs |
| Runway, burn and the milestone the round is meant to reach | Bank statements, payroll, committed spend | Funding analysis compares the ask against the modelled requirement |
| Downside, base and upside scenarios with the assumption that drives each | Sensitivity on pricing, conversion, churn and hiring pace | Scenario simulator recalculates outcomes when any assumption is changed |
Stage 06
Risk, legal and decision
Close the pass with a written verdict that a committee can challenge line by line.
| Check | Evidence that answers it | How VentureIQ automates it |
|---|---|---|
| Cap table, prior rounds, outstanding convertibles and option pool | Cap table export, signed instruments, shareholder agreements | Open questions stay on the register until the document is attached |
| Contradictions between the deck, the model and the data room | Cross-referenced claims across every submitted source | Document intelligence flags contradictory claims and questionable assumptions |
| A recorded verdict with reasoning, confidence and dissent | Investment memo, risk register, evidence ledger, analyst overrides | Investment and development verdicts are produced with a traceable evidence chain |
Run the checklist automatically
Describe the opportunity, attach the data room, and the platform works through the same six stages — producing a cited evidence ledger, a scored risk register and an investment verdict you can defend in committee. Every trial includes the full toolset for 14 days.