Imagine this scenario: you receive a term sheet from an investor. Excitement, congratulations from the team, plans to scale. Then due diligence begins. It turns out that two founders have a verbal agreement on a 50\/50 split, the articles of association come from an S24 template, no one knows who has veto rights, and the cap table exists only in the CEO\u2019s head. The investor gives you two weeks to put everything in order. Otherwise, they walk away.<\/p>\n
Would your company pass this test?<\/p>\n
Startup investment readiness<\/strong> is not a product, a slide, or a pitch deck. It is a state in which your ownership structure, corporate governance, and documentation allow you to enter into discussions with an investor without the risk of due diligence exposing chaos. In 2023, the Polish VC market recorded 438 transactions with a total value of PLN 2.1 billion, while in 2024 there were 148 transactions of the same total value (source: PFR Ventures<\/a>). Competition for capital is increasing, and investors are becoming quicker to eliminate companies that are not formally prepared.<\/p>\n In this article, you will find a specific list of actions you need to take before sitting down at the table with an investor, from auditing your cap table and formalizing relationships between founders to designing corporate governance for the funding round.<\/p>\n Before we move on to the recommendations, let\u2019s clarify the terminology. The investor will use these terms, and you need to understand them too.<\/p>\nKey terms you need to know before speaking with an investor<\/h2>\n