# Seed & VC Fundraising Readiness

> Fundraising readiness means fixing what investors will check before they check it: an accurate fully diluted cap table, up-to-date ROC, tax, GST and labour filings, founders' IP assigned to the company, a three-statement financial model with clear unit economics, and a structured data room. Startups that arrive prepared usually close faster and negotiate from a stronger position.

Practice: Startup Funding, ESOP & Valuation — https://www.industax.com/services/startup-funding/

We run a compliance health check across company law, tax, GST, FEMA and labour, rank the gaps by investor impact, and fix them — late filings, missing registers, unassigned IP or undocumented earlier rounds.

Then we build the materials investors expect: a data room indexed to a standard due-diligence list, the financial model and pitch-deck numbers, and a term-sheet primer so founders understand pre- and post-money valuation, liquidation preference, anti-dilution and board rights before negotiating.

## Key facts

| Item | Detail |
| --- | --- |
| Typical gaps | Unfiled ROC forms, missing allotment filings, IP not assigned, TDS defaults |
| Data room | Corporate, financial, tax, legal, IP, HR and FEMA folders |
| Model | Monthly for 24–36 months, annual for 5 years |
| Term sheet basics | Valuation, liquidation preference, anti-dilution, board, reserved matters |

## Who needs this

- Founders preparing for seed or Series A
- Startups with untidy compliance from early years
- Teams speaking to VC funds for the first time

## What's included

- Compliance health check and rectification plan
- Data room set-up
- Financial model and deck financials
- Term-sheet review support

## Documents

- Incorporation documents and statutory registers
- Financial statements and bank statements
- Contracts and IP documents
- Earlier round documents

## Process

1. **Diagnose** — Investor-style review of the company.
2. **Fix** — Gaps closed in order of impact.
3. **Package** — Data room, model and deck numbers ready.

## Also covers

- **Seed funding preparation** — Pre-seed and seed rounds from angels and micro-VCs.
- **VC funding preparation** — Series A and later institutional rounds.

## FAQs

### How long does fundraising readiness take?

Usually two to six weeks, depending on how many compliance gaps need fixing.

### What do investors check first?

The cap table, past allotment filings, revenue quality and whether founders' IP belongs to the company.

### Should we create an ESOP pool before the round?

Investors often ask for a pool sized before the round, which dilutes existing shareholders only — so model it before agreeing the valuation.

## Official sources

- Ministry of Corporate Affairs — MCA21: https://www.mca.gov.in/
- Startup India — DPIIT recognition and 80-IAC: https://www.startupindia.gov.in/

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Canonical page: https://www.industax.com/services/startup-funding/fundraising-readiness
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.