Startup Funding Readiness Index™
Answer 10 signals across Legal, Financial, IP, Governance and Compliance — your investor-readiness score updates live and shows exactly what to fix before your next raise.
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Disclaimer: Indicative self-assessment for Indian startups. Investor due-diligence requirements vary by stage, sector and fund. Scores are directional, not a guarantee of funding.
What investors actually check in due diligence
Before a term sheet converts to money in the bank, investors run legal, financial and compliance diligence. These are the five dimensions that decide whether a deal closes fast, gets re-priced, or falls apart.
⚖️ Legal & cap table
Proper Private Limited incorporation, a signed Shareholders’ Agreement and founder vesting. A messy cap table or missing SHA is the fastest way to kill a round.
📊 Financial hygiene
CA-certified audited financials and a valuation report from a SEBI-registered merchant banker. No fund releases capital without clean, audited books.
🛡️ IP ownership
Registered trademark and core technology / patents vesting in the company — not in a founder personally. Contestable brand or IP scares investors off.
🏛️ Governance
Documented board meetings with signed minutes, an ESOP policy and signed employment agreements. Governance records prove the company is well-run.
✅ Compliance
Current GST, ROC (MCA), Income Tax and TDS filings, plus DPIIT Startup Recognition for tax benefits and credibility. Pending filings stall diligence.
📈 The score itself
Each of the 10 signals is worth 20 points (200 total). 80%+ means you’re Series A/B ready; below 40% means fix the basics before you pitch.
Pre-fundraise readiness checklist
Work through these before you open a data room. Closing these gaps upfront protects your valuation and shortens diligence from months to weeks.
Incorporate as Pvt Ltd
Investors fund companies, not proprietorships. Get a clean Private Limited structure in place first.
Sign the SHA + vesting
Shareholders’ Agreement with 4-year founder vesting and a 1-year cliff, drafted by a lawyer.
Audit your financials
Statutory audit and CA-certified statements for the last 2 years, with clean books of accounts.
Get a valuation report
From a SEBI-registered merchant banker — legally required to issue shares at a premium.
Protect brand & IP
File your trademark and secure core technology / patents in the company’s name.
Clear all filings + DPIIT
Bring GST, ROC, ITR and TDS current, run board meetings with minutes, and get DPIIT recognition.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.