Slash VC Diligence Time by 70 %
Quick take: Global founders lose more deals in the paperwork desert than in the pitch itself. VCs still log a median 118 hours combing through cap tables, contracts, and KPIs, stretching decisions to 2–6 months—long enough for momentum to die . CapHatch’s founders surface every doc investors need—in a single, permissioned vault—so term sheets arrive 70 % faster.
Build your data room in seven focused sprints, or join CapHatch and have it done for you.
1 — The Diligence Drag (Why Deals Stall)
- 118 hours of document review per deal is the median reported by Tier‑1 funds.
- Angel → VC diligence timeline averages 2–6 months (angel syndicate survey).
- 35 % of signed term sheets collapse when founders “scramble for docs.”
VCs want conviction; a missing doc resets the clock.
2 — What Investors Actually Ask For
| Bucket | Must‑Have Docs |
|---|---|
| Corporate | Certificate of incorporation, bylaws, board minutes |
| Equity | Fully diluted cap table, option plan, SAFEs/Notes |
| Financial | 24‑month P&L, cash runway model, ARR/MRR cohort analysis |
| Product & IP | Architecture overview, provisional patents, contributor IP assignments |
| GTM & Ops | Customer contracts, churn & LTV cohorts, security & compliance policies |
Pro tip: Pre‑label each folder with the question it answers—e.g., “Is IP clean?” rather than “Legal > IP.”
3 — Why a Data‑Room‑First Mindset Wins
- Speed Signal — An organised vault tells investors, “We operate like a Series B company—even if we’re pre‑seed.”
- Control — Watermark + activity log = no uncontrolled downloads.
- Focus — You talk strategy; the room answers admin questions.
See our Cold‑Email Playbook for getting investors to the room.
4 — CapHatch’s 7‑Day Sprint (What We Do for Founders)
| Day | Deliverable | Outcome |
| 1 | Cap table sanity check + SAFE/NOTE library | Zero equity red flags |
| 2 | Board & shareholder minutes template | Governance clarity |
| 3 | Auto‑generated financial model + traction dashboard (CSV ➜ Loom) | Metrics ready to binge‑watch |
| 4 | Tech memo + IP assignment templates | Clean code & IP chain |
| 5 | Customer contract folder + churn & LTV cohorts | Proof of market pull |
| 6 | KPI glossary & investor FAQ sheet | Self‑serve context |
| 7 | Permissions matrix, watermark, audit log | Controlled access ✓ |
$ Result: Investors reach conviction in 7–14 days vs industry 30–60 days .
5 — Case Snapshot: 18‑Day Close
A global founder entering CapHatch with a Google‑Drive mess. Seven days later, the vault goes live; the lead VC issuing a term‑sheet on Day 18. Round closed 2× oversubscribed.
6 — DIY Checklist (If You’re Doing This Solo)
- Choose a professional VDR (iDeals, Dropbox Data Rooms, FirmRoom).
- Authenticate user emails; enable watermark & activity logs.
- Upload only final docs—no drafts.
- Update financial & KPI tabs monthly.
- Restrict access to actively engaged funds—avoid the “20‑VC data‑room death” trap .
7 — Call to Action
Ready to stop losing deals in diligence?
Apply to CapHatch and we’ll assemble an investor‑grade data room in seven days — guaranteed.
Leave a Reply