Due Diligence Checklists › LegalTech › Series B
LegalTech Startup Investment Checklist: Series B Stage (2026)
This checklist covers 20 due diligence items for LegalTech 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.
20 checklist items · 2 red flags automatically detected · See a sample DDR report
Series B Requirements
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$3M–$15M ARR with >100% YoY growth
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Proven sales motion: full quota-carrying team with attainment data
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Expansion into new segments or geographies underway
✓
Net Revenue Retention consistently above 110%
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Gross margin expansion visible in historical data
✓
Clear path to profitability or capital efficiency
LegalTech Sector
✓
UPL legal opinion obtained for all operating states
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Accuracy validation on independent test set documented
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Law firm customer references completed
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Data security and privilege protection architecture reviewed
Deep Dive
✓
UPL risk assessment by state for the product
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Accuracy validation on independent document test sets
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Attorney customer references
✓
Data security for sensitive legal documents
Regulatory
✓
Verify: Unauthorized practice of law in 50+ US jurisdictions
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Verify: Attorney-client privilege implications of cloud document storage
✓
Verify: Bar association ethics rules on AI use in legal practice
OSINT Signals
✓
Check: State bar association guidance on AI legal tools
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Check: G2 and Capterra ratings from law firm customers
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Check: LinkedIn team: number of attorneys on product team
DDR AUTOMATES THIS CHECKLIST
Upload a LegalTech startup pitch deck and DDR automatically completes 14+ of these 20 checklist items — sourcing data from 13 OSINT signals, benchmarking against 2 comparable companies, and detecting all 2 critical red flags.
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