How should a startup raising VC on the verge of terms sheets prepare for the due diligence process? What documents should be included?

Ask your attorney to give you their standard VC due diligence list (it should look similar to what Michael posted). Set up an online document repository on a system like Box.net with all responsive documents that are organized according to the list. When you start due diligence, you can just give the VC's attorneys access to the data room. Make their job easier — it will greatly speed up the process. This is how we advise all our companies.

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