(Verification of Claims & Risk Items)
1. Traction & Revenue
☐ Provide monthly financial statements for the last 18–24 months.
☐ Cross‑check: Does actual recurring revenue match the headline ARR figure?
☐ Provide breakdown of revenue by line (e.g.):
Subscriptions
Services/marketplace commissions
Product/transaction fees
Data / software / licensing
☐ Provide cohort retention analysis (monthly and 12‑month).
Verify: Is actual retention close to what is claimed in the deck?
Compare: Churn vs relevant industry benchmarks.
☐ Clarify and document:
Total number of transactions/units/“servings” delivered to date.
Any discrepancy between deck claims and public statements.
☐ Provide current numbers for:
Registered users
Monthly active users (MAU)
Paying/recurring customers (by tier, if relevant)
2. User Economics (LTV, CAC, Payback)
☐ Provide detailed LTV calculation model:
Inputs: ARPU, churn rate, gross margin, time horizon.
Validate: How is the stated LTV derived?
☐ Provide CAC by acquisition channel:
Paid ads
Organic
Referrals
Partnerships
☐ Verify CAC level against typical benchmarks for similar business models.
☐ Verify payback period calculation:
Rebuild using actual historical cohorts (not just projections).
Confirm if payback period matches claims.
3. Business Model & Operations
☐ Clarify the current core business model:
Subscription platform vs. services marketplace vs. product/transaction model vs. hybrid.
☐ Provide revenue % split by business line for the last 12 months.
☐ Provide standard pricing sheets for key offerings (as applicable):
Service bundles / bookings
One‑off sessions / experiences
Subscription tiers
Add‑ons / upsells
☐ Provide list of active cities/markets and the operating model in each:
Pure software / platform only
Hybrid / full‑stack operations
Local partners or franchises
4. Partnerships & Margins
☐ Provide copies or LOIs for key partnerships (e.g., retail, logistics, platforms).
Verify: Actual commission or revenue‑share rates vs “up to X%” claims.
Confirm duration, exclusivity, and volume commitments.
☐ Provide gross margin breakdown by product line:
Subscriptions
Commissions/fees
Services/experiences
Physical products (if any)
☐ Provide unit economics per transaction for:
A typical service booking
A typical product/order
An average subscriber over 12 months
5. Growth Projections & Fundraising
☐ Provide the model behind 3–5 year revenue and customer projections.
Check assumptions on conversion, churn, pricing, and expansion speed.
☐ Provide detailed use‑of‑funds plan for the current round:
Monthly burn forecast
Headcount plan
Key milestones required for the next round.
☐ Confirm runway calculation:
Rebuild cashflow model and verify claimed runway.
6. Team & Track Record
☐ Obtain LinkedIn profiles and CVs of key team members:
Founder/CEO
CTO / Head of Product
CFO / Head of Finance
Head of Growth / Marketing
Key domain expert (if applicable)
☐ Verify key background claims, such as:
Previous roles at major tech/industry companies
Prior startups built and exited (acquirer, deal size, founder’s stake)
Degrees, accelerators (e.g., YC), notable speaking/awards.
☐ Clarify any leadership changes, title inconsistencies, or gaps between deck and public info.
☐ Request current org chart and hiring plan for the next 18 months.
7. Technology & “AI Moat” (If Applicable)
☐ Request technical overview of the core system:
What is proprietary vs. off‑the‑shelf?
Technology stack and key dependencies.
☐ Clarify data assets and claims (e.g., “X million data points”):
What qualifies as a data point?
Volume from real users vs synthetic or third‑party data.
☐ Ask for performance metrics of any personalization/AI systems:
Engagement lift vs. non‑personalized baseline
A/B test data or internal experiments, where available.
8. Compliance, Safety & Liability
☐ Provide documentation for:
Relevant safety protocols and certifications (industry‑specific).
Insurance coverage (professional liability, product liability, in‑home/field services).
☐ Provide vetting and onboarding process for service providers/partners:
Background checks
Training and quality control
Performance monitoring / rating systems
☐ Provide compliance overview for each geography:
Regulatory requirements
Licenses and permits
Any known or pending issues.
9. Competitive Positioning
☐ Provide a written competitor map:
Direct competitors (similar products/services/market)
Indirect alternatives (adjacent categories, substitute solutions).
☐ Request evidence of differentiation:
Why customers choose this product over alternatives.
Actual switching data, win‑loss analysis, or customer surveys (not just narrative).
☐ Clarify go‑to‑market approach vs competitors:
Channels, positioning, pricing.
10. Legal & Cap Table
☐ Request:
Current fully diluted cap table
Details of all previous rounds (valuation, terms, major investors).
☐ Obtain the exact investment document to be signed (e.g., SAFE/SPA):
Confirm valuation cap, discounts, pro‑rata rights, information rights, MFN, etc.
☐ Confirm any outstanding obligations:
ESOP pool size and grants
Convertible notes, warrants, side letters
Existing investor rights that may affect new investors.