Funding Round Security Checklist: 14 Items Before Raising Capital

January 2026Launch Security

TL;DR

Investors increasingly evaluate security during due diligence. Before raising, ensure no secrets in code, clean dependency tree, documented security practices, and a clear security roadmap. Security maturity signals operational maturity, which investors value highly.

Technical Due Diligence 5

No secrets in git historyThis will be checked. Scan before they do.

Dependencies are currentNo critical vulnerabilities in your stack.

Code quality is reasonableTests exist, architecture is documented.

Tech debt is knownCan articulate what needs fixing and why.

Security basics in placeAuth, encryption, access controls working.

Security Maturity 5

Security roadmap existsKnow what you'll improve with funding.

Incident history documentedPast issues and how you handled them.

Compliance status clearGDPR, SOC 2 progress, industry requirements.

Vendor security assessedKnow your third-party risk exposure.

Data practices documentedWhat data you collect and why.

Operational Readiness 4

Backups are testedProven ability to recover.

Monitoring in placeCan detect and respond to issues.

Access management workingEmployee onboarding/offboarding process.

Security budget plannedKnow what security investment you need.

How much do investors care about security?

More than ever. Post-funding breaches reflect poorly on investors. Series A and beyond typically include technical due diligence. Even seed investors check for obvious red flags like exposed secrets.

What security investment should I plan post-funding?

Common allocations include SOC 2 preparation (if selling to enterprise), security tooling, and potentially a security-focused hire or contractor. Budget 5-10% of engineering spend on security at minimum.

Can security issues delay or kill a funding round?

Yes. Major issues discovered during due diligence can delay closing, reduce valuation, or in extreme cases kill deals. It's much better to find and fix issues before investors look.

Funding Ready

Pass technical due diligence with confidence.

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