INVESTOR READINESS GUIDE
The Investor Readiness Checklist:
12 Financial Controls Institutional Investors Expect at Series A
The controls, documentation, and reporting standards that sophisticated investors verify before writing a Series A check — and how to close the gaps before diligence begins.
12
FINANCIAL CONTROLS
4
CRITICAL AREAS
$500M+
RAISED BY CLIENTS
100+
FOUNDERS ADVISED
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WHAT’S INSIDE
Four categories. Every control that matters.
This checklist is organized around how institutional diligence actually unfolds — not how founders hope it does.
Section 01 · Controls C1–C3
Financial Reporting Infrastructure
Monthly actuals vs. budget reporting, accrual-basis accounting, and the role of a venture-experienced external accountant. The foundation investors check first.
C1 · C2 · C3
Section 02 · Controls C4–C6
Revenue & Cost Controls
Revenue recognition policy, COGS and gross margin hygiene, and departmental P&L integrity. Where financial stories most commonly break down under scrutiny.
C4 · C5 · C6
Section 03 · Controls C7–C9
Cash & Treasury Management
13-week rolling cash forecasts, expense approval controls, and payroll and equity compensation tracking. What investors look for when they probe capital discipline.
C7 · C8 · C9
Section 04 · Controls C10–C12
Investor-Ready Documentation
Cap table accuracy, board governance cadence, and data room readiness. The documentation gaps that most commonly delay or derail Series A term sheets.
C10 · C11 · C12
Priority Rating System
HIGH vs MED: Know Where to Focus
Every control is rated HIGH or MED based on how consistently it surfaces in real institutional diligence processes so you know exactly where to spend your preparation time.
Actionable Preparation
How to Close Each Gap Specifically
Not "improve your controls" but the exact steps required for each control: what to build, what to document, and what to be ready to demonstrate on the spot.
WHAT YOU’LL LEARN
Investors don't ask hard diligence questions to catch founders out. They ask them to determine whether the company's financial infrastructure is strong enough to deploy their capital responsibly.
Infrastructure, not performance.
What investors are really verifying
The stated requirement and the underlying concern are rarely the same. This checklist surfaces both for every one of the 12 controls.
Specific steps to close each gap
Not "clean up your cap table" but the exact actions required — what to build, what to document, and what to demonstrate on the spot during diligence.
A 12-item pre-raise checklist
HIGH and MED priority ratings on every control, so you can triage the gaps that will actually determine whether a term sheet gets signed..
The controls most commonly missing
Written by advisors who have run diligence from both sides of the table — as founders, as investors, and as senior investment bankers.
INSIDE THE CHECKLIST
The controls investors check before they write the check.
Every item is rated HIGH or MED priority based on how consistently it surfaces in real Series A diligence.
Monthly P&L actuals vs. budget, with variance notes
HIGH
Accrual-basis financials - ready for restatement review
HIGH
At least one year reviewed by a venture-experienced CPA
Revenue recognition policy documented and applied consistently
HIGH
HIGH
Clean COGS schedule - nothing misclassified above gross margin
HIGH
Departmental P&L with headcount mapped accurately
MED
13-week rolling cash forecast, reconciled to bank statements
Fully-diluted cap table - all instruments documented and legal
HIGH
HIGH
+ 4 more controls in the full checklist
Close the gaps before diligence finds them.
Most Series A deals that fall apart do so because of issues that were knowable and fixable months before diligence began. This checklist tells you exactly what to address, in what order, and why.
Craig Irvine
Founder & Managing Director
Merrill Lynch · Citigroup · Macquarie
25+ years senior financial leadership
Startup founder & investment banker
US & Asian capital markets
Registered: Weild & Co., FINRA
ABOUT THREE VECTORS CAPITAL
Written by advisors who've run diligence from both sides of the table.
Three Vectors Capital is a Fractional CFO and Financial Advisory firm serving Seed through Series B growth-stage startups. We've supported 100+ founders across 30+ industries and helped clients raise over $500M in equity, debt, and project finance.
Craig Irvine founded Three Vectors after two decades as a senior investment banker at Merrill Lynch, Citigroup, Daiwa, and Macquarie — and after experiencing fundraising firsthand as a startup founder. This guide is written from that dual vantage point: what investors actually look for, and where founders most commonly leave themselves exposed.
Affiliate of Weild & Co. · FINRA/SIPC Member Broker-Dealer & Investment Bank
Serious growth requires serious financial leadership.
GET THE GUIDE
Download the checklist and close the gaps before your next investor meeting.