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Cybersecurity Startup Investment Checklist: Series B Stage (2026)

This checklist covers 24 due diligence items for Cybersecurity startups at the Series B stage. Each item has been validated against institutional investor practice. DDR automates the majority of these checks from a single pitch deck PDF upload.

24 checklist items · 3 red flags automatically detected · See a sample DDR report

Series B Requirements

$3M–$15M ARR with >100% YoY growth
Proven sales motion: full quota-carrying team with attainment data
Expansion into new segments or geographies underway
Net Revenue Retention consistently above 110%
Gross margin expansion visible in historical data
Clear path to profitability or capital efficiency

Cybersecurity Sector

Third-party penetration test report reviewed (last 12 months)
Bug bounty program active and history reviewed
No undisclosed security incidents in company history
MITRE ATT&CK benchmark results reviewed
SOC 2 Type II certification for company's own infrastructure
Encryption standards documentation reviewed
Incident response plan documented and tested

Deep Dive

Third-party penetration test reports from the last 12 months
Efficacy benchmarks on industry-standard threat datasets
Review any prior security incidents or breaches
Verify team's security clearances if targeting government
Assess false positive rate from customer deployments

Regulatory

Verify: Export controls (EAR/ITAR): dual-use security technology may require export licenses
Verify: FedRAMP: required for federal government contracts
Verify: EU NIS2 Directive: new incident reporting and security requirements for EU customers

OSINT Signals

Check: CVE database: any CVEs attributed to or affecting the product
Check: Shodan: public-facing infrastructure security posture
Check: GitHub security advisories for any open-source components
DDR AUTOMATES THIS CHECKLIST

Upload a Cybersecurity startup pitch deck and DDR automatically completes 17+ of these 24 checklist items — sourcing data from 13 OSINT signals, benchmarking against 3 comparable companies, and detecting all 3 critical red flags.

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