Any Founder, any entrepreneur shall have to face a round of financing, sooner or later. And this requires the potential investor to review basic aspects of the Company. These are the basic aspects that every entrepreneur will have to assume. We highline the seven (7) basic aspects, making the checklist you will tackle before receiving 1p.
(1) Corporate Records and Charter Documents
- All minutes of directors’ and stockholders’ meetings, and all written consents of directors and stockholders.
- A corporate entity organizational chart, if there are any parents or subsidiaries.
(2) Business Plan and Financials
- Current business plan and any financial projections.
- Most recent financial statements.
(3) Intellectual Property
- A list of the Company’s trademarks, patents, copyrights and domain names including documentation of filing or registration with the appropriate governmental entities.
- When the Company holds any of the above, it shall be necessary to indicate it and provide the documentation that proves it.
(4) Security Issuances and Shareholders
- A list of the Company’s stockholders.
- A list of the Company’s option holders, including grant dates and exercise prices.
- Copies of agreements relating to outstanding options, warrants, rights or agreements for the purchase or acquisition of any of the Company’s securities, and agreements relating to the Company’s past stock issuances.
- A summary of the vesting schedules of any stock or options subject to vesting, including any vesting acceleration.
- Agreements of restrictive share transfers.
(5) Material Agreements
- Any agreements which involve obligations of, or payments to, the Company in excess of 25,000€.
- Any personal property leases.
- Any agreements concerning the purchase, lease, or sublease of real property.
- Any documents evidencing indebtedness for money borrowed or any other liabilities incurred by the Company.
- Any documents evidencing any mortgages, liens, loans and encumbrances with respect to the Company’s property or assets.
- Any documents evidencing any loans or advances made by the Company.
- Any licenses or agreements of any kind with respect to the Company’s or others’ patent, copyright, trade secret or other proprietary rights, proprietary information or technology, including employee confidentiality and proprietary information agreements.
- Any insurance policies held by the Company or of which the Company is a beneficiary and a summary of such policies, if available.
- Any judgment, order, writ or decree by which the Company is bound or to which it is a party.
- Any standard forms of agreements used by the Company.
- Any joint venture and partnership agreements.
- Any confidentiality and nondisclosure agreements.
- Any agreements requiring consents or approvals in connection with the financing.
(6) Disputes and Potential Litigation
- Any correspondence or documents relating to any pending or threatened action, suit or proceeding or investigation, including, without limitation, (1) Those involving the Company’s employees in connection with their prior or present employment or use of technology. (2) those being conducted by or before any governmental entity or regulatory agency.
- Any correspondence or documents relating to allegations of the Company’s infringement of the proprietary rights of others.
- Any correspondence or documents relating to any labor agreements or actions, union representation, or strike or other labor dispute.
(7)Information Regarding Employees
- A list of the Company’s employees and consultants, including:
- Base salary,
- Target bonus (if applicable),
- State of residence.
- Any agreements, between the Company and any of its officers, directors, affiliates, or any affiliate thereof.
- Any plans, agreements or arrangements that provide benefits contingent upon a change in control.
- Any severance or deferred compensation plans (including any salary deferral agreements, whether written or oral, with employees or consultants).
- Any employee benefits plans, or insurance plans.
- Any Stock Bonus.
- All documents or other information relating to any loans made by the Company to its employees, directors or consultants.
We recommend reading the following links:
- Residencia para inversores: “La Golden Visa” 
- ¿Qué es la “materialidad” en términos de “estados financieros”?