Seed Due Diligence Checklist

Seed-stage due diligence goes deeper than pre-seed. You're evaluating traction, product-market fit signals, and the team's ability to execute. Use this checklist before writing a seed check.

Product checklist: Working MVP (live product with users), User engagement (retention curves, usage frequency), Product roadmap (clear vision for next 12 months), Technical moat (proprietary tech, data, or network effects).

Traction checklist: Revenue (if applicable — $10K-$100K MRR for seed), User growth (month-over-month growth rate), Customer acquisition (CAC and LTV, even if early), Engineering velocity (GitDealFlow signal — strong momentum).

Team checklist: Full-time founders (all committed), Key hires (technical and commercial leads identified), Advisors (relevant domain experts), Cap table (clean, reasonable founder ownership).

FAQ

What revenue should a seed startup have?

Varies by sector. SaaS: $10K-$50K MRR. Consumer: less revenue focus, more user growth. Developer tools: often pre-revenue at seed. Engineering velocity (GitDealFlow) matters more than revenue for technical products.

How much dilution is reasonable at seed?

Founders should retain 70-80% post-seed. More than 25% dilution at seed is a red flag — it suggests either over-raising or weak negotiating.

Should I require customer references?

Yes, for revenue-generating startups. Talk to 3-5 customers. Ask: 'Would you pay more?' and 'What would make you churn?'

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