Verycreatives

A compelling pitch gets you in the room. Due diligence determines whether you leave with a term sheet.

VCs evaluate startups across 8 distinct areas before committing capital. Understanding what they're looking for, and preparing accordingly, is one of the highest-leverage things a founding team can do.

Here is what the process actually covers:

1. Market size and TAM validation

2. Management team and founder-market fit

3. Financial performance and unit economics

4. Technology stack and IP defensibility

5. Competitive landscape and moat analysis

6. Customer validation and product-market fit signals

7. Legal and regulatory compliance

8. Scalability and growth strategy

A few things stand out from the data.

Unit economics are the primary financial filter for SaaS startups. A strong LTV to CAC ratio (ideally 3:1 or higher) signals a repeatable, efficient growth model that survives scrutiny at every stage.

At the early stage, team quality carries the most weight. By Series B, the focus shifts sharply toward financial performance and proven traction.

Legal and IP gaps remain the most common reason late-stage deals fall apart. Something as simple as a key engineer who never signed an IP assignment agreement can kill an otherwise strong round.

The technical evaluation is also where many founders feel least prepared. At VeryCreatives, we work with investors and founding teams to bring an independent layer of technical validation to this phase, covering architecture, scalability, and roadmap feasibility.

The full 8-step breakdown is on our blog.

The legal tech window is wide open for non-technical innovators right now.

Law firm technology spending continues to outpace inflation as departments face increasing pressure to automate repetitive hourly tasks. Founders who act fast can capture market share while traditional firms scramble to modernize their internal operations.

Explore the comprehensive guide designed specifically for non-technical industry experts.

➡️

How to Build a Legaltech Product: The Non-Technical Founder's Guide The legaltech market hit $26.7B in 2024. Here's how non-technical legal founders build a validated, compliant SaaS product: costs, compliance, and hiring explained.

The best time to position your software for exit is 24 months early.

Scrambling to fix messy data rooms and revenue concentration under time pressure ruins your negotiating leverage.

True premium outcomes happen when your financial compounding metrics align with major regulatory calendar updates.

Review the complete founder playbook for maximizing your strategic acquisition value.

➡️

How to Position Your RegTech SaaS for Acquisition: A Founder's Playbook The RegTech market hit $16.45B in 2024. Here's how RegTech SaaS founders can position for a premium acquisition: the metrics, timing, and moves that matter.

A complex signup flow is driving your customers away.

Demanding detailed company information upfront creates unnecessary friction before the user even tries the system. Capturing minimal data first allows you to collect the rest after they see real results.

Explore the five key screens needed for self-service success.

➡️

How to Design SaaS Onboarding Into Your MVP: A Founder's Guide 98% of users churn within 2 weeks without experiencing product value (Amplitude, 2025). Here's how to design SaaS onboarding into your MVP before a single user signs up.