EdTech · Series B Stage Due Diligence

EdTech Series B Due Diligence Checklist

The complete Series B due diligence checklist for EdTech startups. Prepare your data room, anticipate every investor request, and close your round faster.

All Checklists

6–12 weeks

Typical DD Timeline

5

DD Categories Covered

50+

Checklist Items Total

EdTech Regulatory DD Context

EdTech DD includes student data privacy review across all states where you operate. Investors will verify FERPA, state-specific data privacy laws (SOPIPA, CSPA), and any CIPA compliance for school networks.

Data Room Essentials for Series B

Documents to have ready before DD begins

  • 3 years of audited financial statements
  • Full customer list with contract terms and renewal dates
  • Complete IP portfolio with FTO opinion
  • All board materials and resolutions
  • Material subsidiary documentation
  • Insurance policies (D&O, E&O, cyber)
  • All government filings and regulatory correspondence

LEGALLegal Due Diligence

Institutional-grade legal DD covering corporate governance, regulatory risk, key contract change-of-control provisions, and cross-border compliance. Full rep and warranty review.

General Legal Items

  • Certificate of Incorporation and all amendments
  • Bylaws and any shareholder agreements
  • Cap table with fully diluted ownership by class
  • All convertible instruments (SAFEs, notes, warrants)
  • Option pool documentation and all grants
  • Founder IP assignment agreements
  • Co-founder agreements and vesting schedules
  • Material third-party agreements

EdTech-Specific Legal Items

  • FERPA compliance for student data handling
  • COPPA compliance for under-13 user data
  • State education agency data privacy agreements
  • Accreditation status and recognition (if issuing credentials)
  • Content licensing agreements for third-party materials

FINANCIALFinancial Due Diligence

Audited financial statements (typically required). Revenue quality review by Big 4 accounting firm. Deep customer cohort and retention analysis. Cap table fully modeled through exit scenarios.

General Financial Items

  • Financial statements (P&L, balance sheet, cash flow)
  • Bank statements (12+ months)
  • Accounts receivable aging report
  • Accounts payable aging report
  • Payroll records and headcount history
  • Revenue recognition policy documentation
  • Tax returns and any outstanding tax obligations
  • Insurance policies (D&O, E&O, general liability)

EdTech-Specific Financial Items

  • B2B vs. B2C revenue split and margin comparison
  • Institutional contract renewal rates and multi-year booking trends
  • Per-learner economics by acquisition channel
  • Content development cost amortization policy
  • Government Title IV or grant funding dependency

PRODUCTProduct and Technical Due Diligence

  • Learning efficacy study design and results
  • Accessibility compliance (WCAG 2.1 AA)
  • FERPA-compliant data architecture documentation
  • Rostering integration status (Clever, ClassLink)
  • Mobile app performance and retention metrics

MARKETMarket Due Diligence

  • Procurement cycle length and approval chain by district size
  • Competitive win rate in district RFP processes
  • State standards alignment by curriculum product
  • Teacher and administrator NPS by school segment

TEAMTeam Due Diligence

Executive team professional background investigations. Non-compete and non-solicitation enforceability analysis. Board composition governance review.

  • LinkedIn profiles for all founders and officers
  • Employment agreements for key personnel
  • Equity grant history and vesting schedules
  • Any prior employer IP invention disclosure forms
  • Non-compete and non-solicitation agreements
  • Professional reference contacts (3+ per founder)
  • Advisory board agreements and equity grants
  • Organizational chart as of current date

Frequently Asked Questions

How long does Series B due diligence typically take for EdTech startups?

EdTech Series B due diligence typically takes 6–12 weeks. Institutional-grade legal DD covering corporate governance, regulatory risk, key contract change-of-control provisions, and cross-border compliance. Full rep and warranty review. Having a complete data room ready before DD kicks off can reduce this timeline by 30–50%.

What EdTech-specific items do investors review during Series B DD?

For EdTech at the Series B stage, investors focus heavily on: FERPA compliance for student data handling, COPPA compliance for under-13 user data, and B2B vs. B2C revenue split and margin comparison, Institutional contract renewal rates and multi-year booking trends. EdTech DD includes student data privacy review across all states where you operate. Investors will verify FERPA, state-specific data privacy laws (SOPIPA, CSPA), and any CIPA compliance for school networks.

What should I put in my data room?

Your Series B data room should include: 3 years of audited financial statements; Full customer list with contract terms and renewal dates; Complete IP portfolio with FTO opinion; All board materials and resolutions; Material subsidiary documentation; Insurance policies (D&O, E&O, cyber); All government filings and regulatory correspondence. Use a structured folder system that mirrors investor expectations — most institutional investors use a standard folder taxonomy.

What are the most common due diligence deal-killers?

The five most common DD deal-killers are: (1) undisclosed founder litigation or criminal history, (2) IP ownership gaps — particularly for university-origin technology, (3) customer contract terms that prevent assignment on change of control, (4) cap table math errors or undocumented equity grants, and (5) financial restatements required after revenue recognition review.

What team due diligence should I expect at the Series B stage?

Executive team professional background investigations. Non-compete and non-solicitation enforceability analysis. Board composition governance review.

Download the Full Checklist

Get the EdTech Series B due diligence checklist as a Google Sheets or Notion template. Track completion status for every item in your data room.

Includes data room folder template, investor question tracker, and reference FAQ guide

Other EdTech Stages