Funding Readiness Checklist

Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Funding Readiness Checklist

This checklist assists {{company_name}} in evaluating its preparedness for seeking equity funding. A 'Yes' response indicates readiness or compliance, while 'No' suggests areas requiring attention before engaging with potential investors.

1. Legal & Compliance

1.1. Is the company legally registered with CIPC (Companies and Intellectual Property Commission)? (Yes/No)

1.2. Are all company statutory documents (e.g., Memorandum of Incorporation, share registers) up-to-date and readily available? (Yes/No)

1.3. Are there any pending, threatened, or ongoing legal disputes or litigations involving the company? (Yes/No)

1.4. Has the company complied with all relevant labour laws, including the Basic Conditions of Employment Act (BCEA)? (Yes/No)

1.5. Is the company compliant with the Protection of Personal Information Act (POPIA) regarding data handling? (Yes/No)

1.6. Are all intellectual property (trademarks, patents, copyrights) owned or licensed by the company properly registered and protected? (Yes/No)

1.7. Have all necessary business licenses and permits been obtained and are they current? (Yes/No)

2. Financial Health & Records

2.1. Are financial statements (balance sheet, income statement, cash flow statement) prepared and audited/reviewed for the last {{number_of_years}} years? (Yes/No)

2.2. Is the company registered for tax purposes with SARS (South African Revenue Service) and are all tax submissions up-to-date? (Yes/No)

2.3. Does the company have a clear track record of revenue generation and profitability? (Yes/No)

2.4. Is there a detailed financial forecast/projection for the next {{number_of_years}} years? (Yes/No)

2.5. Are there any existing debts, loans, or significant liabilities that need to be disclosed? (Yes/No)

2.6. Has the company undergone a financial audit or due diligence recently? If so, are the reports available? (Yes/No)

2.7. Is there a clear understanding of the company's burn rate and runway? (Yes/No)

3. Business Model & Market

3.1. Is there a clear, well-defined business plan outlining the company's strategy, products/services, and target market? (Yes/No)

3.2. Does the company have a unique value proposition and competitive advantage? (Yes/No)

3.3. Is there a comprehensive understanding of the target market size, growth potential, and competitive landscape? (Yes/No)

3.4. Has market research been conducted to validate product-market fit? (Yes/No)

3.5. Are there existing customer testimonials, case studies, or reference clients? (Yes/No)

4. Management Team & Operations

4.1. Does the company have a strong, experienced management team with clear roles and responsibilities? (Yes/No)

4.2. Are there employment contracts in place for key personnel? (Yes/No)

4.3. Is there a clear organizational structure and reporting lines? (Yes/No)

4.4. Are operational processes well-documented and efficient? (Yes/No)

4.5. Does the company have a robust risk management strategy in place? (Yes/No)

4.6. Is the company compliant with any relevant industry-specific regulations, such as the Rental Housing Act (RHA) if applicable? (Yes/No)

5. Investor Relations & Asking

5.1. Has the company clearly defined its funding requirements and how the funds will be utilised? (Yes/No)

5.2. Is there a well-prepared investor pitch deck? (Yes/No)

5.3. Does the company have a clear exit strategy for investors? (Yes/No)

5.4. Is there a valuation report or a clear understanding of the company's valuation expectations? (Yes/No)

5.5. Are there any existing shareholder agreements or cap tables that need to be presented? (Yes/No)

Sign-off

Prepared by: {{preparer_name}}

Title: {{preparer_title}}

Date: {{date}}