Startup Fundraising Checklist: A Step-by-Step Guide

Many founders jump into investor meetings before they are actually ready. They have a product, a vision, and a lot of energy, but no clear process.

Fundraising is not just a series of pitch meetings. It is a structured process that takes planning, the right documents, and a solid understanding of what investors expect.

If you are preparing to raise capital for the first time, this startup fundraising checklist is for you. Use it as a practical guide to get investor-ready before you send a single email.

Startup Fundraising Checklist

Step 1: Define Your Startup Fundraising Goals

Before you talk to a single investor, you need to be clear on the basics:
“How much are you raising, why, and what will you do with the money?“

• These seem like obvious questions, but many first-time founders skip this step, and it shows.

• Start by connecting your fundraising target to specific milestones, not just to your monthly burn rate. Investors want to know what progress their money will unlock.

• For example: "We are raising $800,000 to reach product-market fit and hit $50,000 in monthly recurring revenue within 18 months." That is a fundable story.

• "We need six months of runway" is not.

• It also helps to be clear on what stage you are at:

• • Pre-seed: You are testing an idea, building an MVP, or validating early assumptions. Rounds are typically small, often in the $100,000 to $500,000 range.
• • Seed: You have an early product and some traction. You are raising to grow. Rounds typically range from $500,000 to $3 million.
• • Series A: You have demonstrated product-market fit and a repeatable growth model. Rounds are usually $3 million and up.

Step 2: Prepare Your Fundraising Documents and Data Room

One of the most common reasons early-stage fundraising stalls is the documentation. Investors will ask for specific materials at every stage of the process, and not having them ready sends the wrong signal.

Here is a startup pitch deck checklist and document list to prepare before you start outreach:

• Your pitch deck is usually the first thing an investor sees. It needs to be clear, visually clean, and tell a compelling story in under 15 slides.
• Your financial model shows that you understand your business, even rough projections matter at the early stage.
• Your cap table tells investors how ownership is structured and how much dilution future rounds might bring.
• And your data room saves time during due diligence: have your incorporation documents, financials, contracts, and IP agreements ready to share.

The due diligence checklist for startups is longer than most founders expect. The earlier you start building it, the smoother your process will be.

Step 3: Validate Your Traction and Financials

Investors, especially at the seed stage, invest in traction. Before you start outreach, make sure you can speak confidently to the growth metrics that matter most for your business.

This is the part of the startup fundraising process that many early-stage founders underestimate.

Here are the key areas to cover:

• Revenue and growth: MRR (Monthly Recurring Revenue) or ARR (Annual Recurring Revenue), month-over-month growth rate, total revenue to date.
• Retention and engagement: Are users coming back? A high churn rate is a red flag.
• Product-market fit signals: Organic referrals, low CAC (Customer Acquisition Cost), strong retention, and user testimonials all point toward fit.
• Market size: Know your TAM (Total Addressable Market), SAM (Serviceable Addressable Market), and SOM (Serviceable Obtainable Market). Investors want to see a large, reachable opportunity.
• Startup valuation: Be ready to explain your valuation rationale. Common methods include comparable company analysis and revenue multiples. At early stages, traction often matters more than DCF models.

If you are pre-revenue, focus on qualitative evidence of product-market fit: user interviews, waitlist sign-ups, pilot agreements, or letters of intent from potential customers. These scalability and traction metrics tell a story even before the numbers are big.

Step 4: Create Your Investor Outreach Strategy

Not every investor is the right fit for your startup. Stage, sector, geography, and fund size all matter. Sending the same generic pitch to 200 investors is one of the most common and costly mistakes early-stage founders make. A focused, researched investor outreach strategy will get you further than a broad, impersonal one.

Start by understanding the types of investors available to you:

• Angel investors: Individuals who invest their own money, often at the pre-seed or seed stage. Good for founders who need more than just capital, many angels offer mentorship and introductions.
• Venture capital (VC):** Firms that manage pooled funds and typically invest at seed, Series A, and beyond. They move slower but write larger cheques.
• Crowdfunding: Platforms like Wefunder or Republic let you raise from a broader pool of investors. Good for consumer-facing products with community appeal.
• Grants and government funding: Non-dilutive options worth exploring, especially in Canada. The NRC IRAP, SR&ED, and regional innovation programs are worth researching.

Once you know who you are targeting, build a list of 30 to 50 investors who are a genuine fit. Warm introductions through accelerators, advisors, or mutual connections consistently outperform cold outreach. If you are cold outreach, personalise every message by referencing their portfolio, their thesis, and why you are specifically right for them.

Step 5: Navigate the Fundraising Process

Once your materials are ready and your investor list is built, the fundraising process itself typically follows a predictable path.

Understanding each stage helps you manage your pipeline and set realistic expectations.

• Outreach and intro meeting: First contact usually a 30-minute call or video meeting. Your goal is to get a follow-up, not close the round.
• Follow-up and deeper diligence: If there is interest, the investor will ask more questions, request your data room, and potentially bring in other partners.
• Due diligence: A thorough review of your business financials, legal structure, cap table, team, and market. This is where your preparation pays off.
• Term sheet: If an investor wants to move forward, they will issue a term sheet outlining the deal structure. Key terms to understand: valuation, equity percentage, board seats, pro-rata rights, and any protective provisions.
• Closing: Legal documents are signed, and funds are wired. This step takes longer than most founders expect; plan for 4 to 8 weeks after a signed term sheet.

Common deal structures you will encounter at the early stage:

• SAFEs (Simple Agreements for Future Equity): Common at pre-seed and seed. You raise money now; it converts to equity at a future priced round.
• Convertible notes: Similar to SAFEs but with a maturity date and interest rate.
• Priced equity rounds: You agree on a valuation now and issue shares accordingly. More common at Series A and beyond.

Watch out for significant equity dilution in early rounds, long close timelines, and terms that limit your flexibility in future fundraising. A fundraising timeline of 3 to 6 months for a seed round is realistic, though sometimes longer.

Bonus: Investor Questions Every Founder Should Prepare For

Even with a solid pitch and strong materials, investor meetings can catch you off guard.

Here are five questions you should be able to answer confidently every time:

1. "What problem are you solving, and why now?"
   Know your 'why now' answer cold. Market timing matters.
2. "What is your go-to-market strategy?"
   Be specific. "We will use social media" is not a strategy.
3. "How will you use the funds?"
   Tie your answer to milestones, not just categories like "marketing" or "hiring."
4. "Who else is in the round?"
   Social proof matters. Be transparent about your current commitments.
5. "What does your cap table look like?" Know your numbers and be ready to explain any past financing.

Final Thoughts

Fundraising is a process, and preparation is what separates funded founders from the rest. The founders who close rounds are not necessarily the ones with the best ideas; they are the ones who show up prepared, know their numbers, and have done the work before the first meeting.

This startup fundraising checklist is a starting point. Every round is different, every investor is different, and your context will shape how each step plays out. But the fundamentals here apply across stages and sectors.

The best time to start preparing is before you need the money. If you are getting ready to raise, Evalyze can help you get investor-ready faster, from analyzing your pitch deck to matching you with the right investors and coaching you through the tough questions.