Startup Fundraising Closing Checklist: From Signed Term Sheet to Money Received

TL;DR

• After the term sheet, work shifts toward confirmatory diligence, approvals, definitive documents, signatures and funds transfer.
• Keep one closing checklist with an owner and status for every condition.
• Do not circulate uncontrolled cap-table or financing-document versions.
• After funds arrive, update the cap table and archive final signed documents.

What happens between term sheet and cash

The period after a term sheet is where ownership, governance, legal representations and investor rights become binding. A disciplined closing workflow reduces last-minute confusion and makes the final financing record auditable.

Step-by-step workflow

1. Finish diligence

Resolve open financial, legal, IP, employment and compliance questions.

2. Finalize documents

Work with qualified counsel on the definitive financing documents.

3. Obtain approvals

Complete board, shareholder or other approvals required by the company.

4. Collect signatures

Track execution across founders, investors and other required parties.

5. Coordinate funds

Confirm closing mechanics and lawful wire instructions through appropriate parties.

6. Reconcile ownership

Update the cap table and archive final signed records.

What to prepare

• Final cap table.
• Board/shareholder consents.
• Definitive financing documents.
• Investor signature status.
• Closing checklist and conditions.
• Final signed copies.

Related SendNow resource: fundraising data room checklist.

Common mistakes

• Using email threads as the only closing checklist.
• Changing wire instructions casually by email.
• Forgetting to update ownership records after funding.
• Keeping only draft documents instead of executed copies.

External reference: NVCA model legal documents.

See the VDR and Microsite workflow

Frequently asked questions

Is a signed term sheet the same as closing?

No. Closing normally requires final diligence, definitive documents, approvals, signatures and funding.

Who should own the closing checklist?

One responsible person should coordinate founders, finance and counsel so every condition has an owner and status.

What should be archived after closing?

Final signed financing documents, approvals, cap-table records and definitive closing materials.

Build a cleaner investor workflow

Use SendNow Microsites when the round moves beyond a single deck.