Checklist · Identity
Identity fundraising checklist — Step by Step 2026
Raising capital for an Identity startup requires a strong technical foundation and a clear understanding of the market. This checklist helps you prepare your authentication, SSO, MFA, and compliance strategies for investor scrutiny, highlighting key areas like passwordless implementation and handling user migration challenges.
Phase 01
Technical Audit & Security Review
- TA1critical4 weeks
Penetration testing of authentication flows
Engage a security firm to audit your authentication flows, focusing on SSO, MFA, and passwordless implementations. Ensure compliance with standards like SOC 2 and HIPAA.
- TA2critical3 weeks
Review and harden user data storage
Assess your database security and encryption practices, especially for sensitive user data. Consider using solutions like Vault for secret management.
- TA3high2 weeks
Assess compliance with privacy regulations
Evaluate your compliance with GDPR, CCPA, and other relevant privacy regulations. Implement data residency solutions if necessary.
- TA4high2 weeks
Implement robust logging and monitoring
Set up comprehensive logging and monitoring systems to detect and respond to security incidents. Integrate with SIEM tools for advanced threat detection.
- TA5medium1 week
Evaluate third-party integrations
Review the security of your integrations with third-party identity providers and services. Ensure proper access controls and data protection measures.
- TA6medium1 week
Document incident response plan
Develop a detailed incident response plan for security breaches and data leaks. Include procedures for notification, containment, and recovery.
- TA7critical2 weeks
Review passwordless implementation
Thoroughly check security of passwordless methods, such as WebAuthn or FIDO2, to defend against phishing and account takeover.
- TA8high1 week
Assess SSO integration security
Ensure the SSO solution is securely integrated with all relevant applications and services, with proper authentication and authorization mechanisms.
- TA9high1 week
Check MFA implementation
Verify that MFA is enforced for all users and that the chosen MFA methods are robust and resistant to common attacks.
- TA10medium1 week
Audit user migration process
Assess the security and integrity of the user migration process from legacy systems to your platform. Ensure data is properly anonymized and protected during migration.
Phase 02
Market Validation & Product Positioning
- MV1critical2 weeks
Define target audience and market segment
Identify your ideal customer profile and target market segment (e.g., developers, security teams, product builders). Focus on their specific identity management needs.
- MV2critical2 weeks
Analyze competitive landscape
Research competitors like Auth0, Clerk, and Supabase Auth. Identify your unique selling proposition (USP) and differentiation factors.
- MV3high2 weeks
Conduct customer interviews
Interview potential customers to understand their pain points and requirements for identity management solutions. Focus on SSO, MFA, passwordless, and compliance.
- MV4high1 week
Develop value proposition
Craft a compelling value proposition that highlights the benefits of your identity platform, such as improved security, reduced costs, and enhanced user experience.
- MV5medium2 weeks
Create a product demo
Develop a demo showcasing the key features and functionality of your identity platform, including authentication, SSO, MFA, and passwordless capabilities.
- MV6medium1 week
Validate pricing model
Determine a pricing model that aligns with your target market and competitive landscape. Consider MAU, per-connection, enterprise, and support-based pricing.
- MV7high1 week
Refine messaging and positioning
Based on customer feedback and market analysis, refine your messaging and positioning to resonate with your target audience. Emphasize the benefits of your solution over competitors.
- MV8medium1 week
Analyze Auth0 alternatives
Clearly define how your solution provides value over Auth0 or other competitors in the identity space.
- MV9medium1 week
Conduct user testing
Gather feedback on ease of use, functionality, and overall satisfaction with your identity platform.
- MV10high1 week
Prepare launch strategy
Plan your product launch strategy, including target channels (e.g., Hacker News, Product Hunt, Dev.to, Twitter, security blogs) and key messaging.
Phase 03
Financial Projections & Business Model
- FP1critical3 weeks
Develop a detailed financial model
Create a comprehensive financial model that projects revenue, expenses, and cash flow for the next 3-5 years. Include assumptions for user growth, pricing, and customer acquisition costs.
- FP2high1 week
Define key performance indicators (KPIs)
Identify the key metrics that will drive your business, such as monthly active users (MAU), customer lifetime value (CLTV), and churn rate. Align these KPIs with your financial model.
- FP3critical1 week
Determine funding requirements
Calculate the amount of funding you need to achieve your growth objectives. Consider different funding sources, such as venture capital, angel investors, and grants.
- FP4high2 weeks
Prepare a pitch deck
Create a compelling pitch deck that tells the story of your identity startup and highlights your value proposition, market opportunity, and financial projections.
- FP5medium2 weeks
Develop a business plan
Write a detailed business plan that outlines your strategy for building a successful identity platform. Include sections on market analysis, competitive landscape, product development, and marketing.
- FP6high1 week
Model MAU growth
Develop a clear plan for acquiring and retaining MAUs on your identity platform.
- FP7medium1 week
Project per-connection revenue
Estimate revenue based on per-connection pricing and usage patterns. Consider different tiers and pricing options.
- FP8medium1 week
Forecast enterprise deals
Develop a sales strategy for securing enterprise deals and project the revenue from these deals.
- FP9medium1 week
Plan for support costs
Estimate the costs associated with providing customer support, including staffing, tools, and training.
- FP10low1 week
Factor in professional services
Assess the potential revenue from professional services, such as implementation, customization, and training.
Phase 04
Legal & Compliance Due Diligence
- LC1critical1 week
Incorporate the company
Choose a legal structure for your startup (e.g., C-corp, LLC) and incorporate the company in a suitable jurisdiction.
- LC2critical2 weeks
Draft legal agreements
Prepare legal agreements such as terms of service, privacy policy, and service level agreements (SLAs). Ensure compliance with relevant laws and regulations.
- LC3high1 week
Obtain necessary licenses and permits
Identify and obtain any licenses and permits required to operate your identity platform in your target markets.
- LC4high2 weeks
Protect intellectual property
File for patents, trademarks, and copyrights to protect your intellectual property, including your brand name, logo, and technology.
- LC5critical2 weeks
Comply with data privacy regulations
Implement policies and procedures to comply with data privacy regulations such as GDPR, CCPA, and HIPAA. Appoint a data protection officer (DPO) if required.
- LC6high2 weeks
Ensure SOC 2 compliance
Prepare for a SOC 2 audit to demonstrate your commitment to security, availability, processing integrity, confidentiality, and privacy.
- LC7medium1 week
Review B2B contracts
Thoroughly review contracts with B2B partners and customers to ensure compliance and protect your interests.
- LC8medium1 week
Address user verification requirements
Implement procedures for verifying user identities and complying with KYC/AML regulations, if applicable.
- LC9medium1 week
Address data residency
Ensure compliance with data residency requirements in different jurisdictions, if applicable.
- LC10low1 week
Review insurance coverage
Assess your insurance needs and obtain appropriate coverage, including cyber liability insurance.
Phase 05
Investor Outreach & Relationship Building
- IO1critical2 weeks
Identify target investors
Research and identify venture capital firms, angel investors, and strategic investors who are interested in the identity management space.
- IO2highOngoing
Build relationships with investors
Attend industry events, network with investors, and build relationships with key decision-makers.
- IO3high1 week
Prepare a concise elevator pitch
Develop a short and compelling elevator pitch that summarizes your identity startup's value proposition and market opportunity.
- IO4medium1 week
Send out teaser emails
Send targeted teaser emails to potential investors, highlighting your key achievements and asking for a meeting.
- IO5criticalOngoing
Schedule investor meetings
Schedule meetings with interested investors to present your pitch deck and answer their questions.
- IO6highOngoing
Follow up with investors
Follow up with investors after meetings to answer any outstanding questions and keep them updated on your progress.
- IO7critical2 weeks
Negotiate term sheets
Negotiate term sheets with investors to reach a mutually agreeable funding agreement.
- IO8critical1 week
Close the funding round
Finalize the legal documentation and close the funding round.
- IO9high1 week
Showcase Auth capabilities
Highlight robust Auth features like SSO, MFA, Passwordless, and Directory integrations to investors.
- IO10high1 week
Highlight compliance achievements
Demonstrate your commitment to compliance and certifications such as SOC 2, GDPR, and HIPAA.
Pro tips
- Focus on demonstrating strong security practices, as identity is a highly sensitive area.
- Showcase how your solution simplifies compliance with regulations like GDPR and CCPA.
- Highlight your differentiation from competitors like Auth0 and Clerk.
- Emphasize the ease of integration and developer experience of your identity platform.
- Clearly articulate your pricing model and revenue projections.