2026-06-11 · SaaS security

Series A Security Checklist: What Investors Ask and How to Be Ready

The core checklist investors use at Series A usually covers: a recent penetration test and remediation, how you handle customer data, access controls, incident response, and compliance posture (for example SOC 2 or ISO 27001 progress). The best time to prepare is 3 to 6 months before your raise, not during term sheet negotiations.

Most Series A founders are still caught off guard the first time they see a full security due diligence pass. This article walks through what investors ask, what the process looks like, and how to get your security posture ready before the conversation starts.

TL;DR
Series A investors ask about penetration testing, data handling practices, access controls, incident response plans, and compliance posture (SOC 2, HIPAA, PCI-DSS where relevant). The best time to prepare is 3 to 6 months before your raise, not during term sheet negotiations. A clean pentest report and basic security documentation will satisfy most investor security reviews.

What Do Series A Investors Actually Ask About Security?

Security due diligence at Series A has become standard at most institutional funds, particularly for B2B SaaS companies handling customer data. The questions typically come in one of three forms: a written security questionnaire, a direct conversation with a technical partner or operating team, or a third-party review requested by the fund.

The most common questions founders receive:

Have you had a penetration test?
This is the single most common security question at Series A. Investors want to know whether an independent expert has assessed your product for vulnerabilities and what you did with the findings. A recent pentest report (within the last 12 months) with documented remediation is the clearest signal that you take security seriously.

How do you handle customer data?
Where is data stored, how is it encrypted in transit and at rest, who inside your company can access it, and what controls prevent unauthorized access? For companies handling sensitive data (health, financial, personal), investors will ask whether you have mapped your data flows and whether access is logged.

Do you have SOC 2, ISO 27001, or equivalent?
Not every Series A company has completed a formal compliance certification, and investors do not always require it. But they will ask where you are in the process. "We are targeting SOC 2 Type I by Q3" is a credible answer. "We have not thought about it" is not.

What happens if you get breached?
Investors want to know you have an incident response plan, even a basic one. Who gets notified, in what order, within what timeframe? Do you have cyber insurance? Have you tested your response?

Who has access to production?
How many people can directly access your production environment and customer data? Is access controlled by role, logged, and reviewed? Is multi-factor authentication enforced across your team?

What Does Security Due Diligence Actually Look Like?

The depth of security due diligence varies significantly by fund, deal size, and the nature of your product. Here is what to expect across three common scenarios:

Light-touch review (most common at Seed to Series A)
A written questionnaire of 20 to 50 questions covering data handling, access controls, vulnerability management, and compliance status. Usually completed by the founder or CTO. Takes 2 to 4 hours if your documentation is in order. This is the standard for most Series A deals.

Technical partner review
Some funds have technical partners or operating team members who will review your architecture, ask follow-up questions about specific controls, and sometimes request your most recent pentest report or security audit. Common at funds that focus on B2B, enterprise, or regulated industries.

Third-party security assessment
Less common at Series A, but increasingly used by larger funds or for companies in sensitive verticals. The fund may request a third-party penetration test or security review as a condition of closing, or require one to be completed within 90 days post-close. Being ahead of this is a significant advantage.

How to Get Your Security Ready Before the Raise

The goal is not to have a perfect security posture before your Series A. It is to demonstrate that security is a managed, intentional part of how you operate. Here is what to have in place:

Get a Penetration Test Done

A clean pentest report is the single most impactful thing you can do for Series A security readiness. It shows investors that an independent expert has reviewed your product, you know where your risks are, and you have addressed them. Aim to complete your pentest 3 to 6 months before your raise so you have time to remediate findings before the report lands in front of a due diligence team.

If critical or high vulnerabilities are found, and they usually are in a first pentest, that is not a problem, provided you can show they have been fixed. A report showing three critical findings, all remediated, is better than no report at all.

Faultline Security provides fixed-price pentests starting from €3,000, with reports delivered in under two weeks. Every engagement includes a letter of attestation, a one-page document confirming the pentest was performed, shareable with investors and customers without an NDA.

"Faultline came in with clear scoping, fast turnaround, and a report our engineers could act on immediately."
João Lages, Co-Founder and General Manager, Lympid

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Start Your SOC 2 Journey (Even if You Are Not Done)

You do not need a SOC 2 report to close a Series A, but you do need a credible answer to the question. Investors understand that early-stage companies are in process. What they are looking for is intentionality: a target date, a compliance partner engaged, and basic security controls in place that map to the SOC 2 Trust Services Criteria.

The five SOC 2 Trust Services Criteria are a useful framework even before you engage an auditor: Security, Availability, Processing Integrity, Confidentiality, and Privacy. Run through each and document where you stand.

Document Your Security Policies

Investors will sometimes ask for evidence of security policies, not because they expect a 200-page information security manual, but because written policies signal that your team is operating to a standard, not improvising. The minimum set to have documented:

Access control policy (who can access what, how access is provisioned and revoked)
Data handling and retention policy
Incident response plan (even a one-page version)
Vulnerability management process (how you find, triage, and fix security issues)
Employee security training record

These do not need to be elaborate. A shared Notion document with clear ownership and a last-reviewed date is enough for most Series A reviews.

Lock Down Access Controls

Before your raise, audit who has access to your production environment and customer data. The standard investors expect:

Multi-factor authentication enforced for all team members, especially on cloud infrastructure, code repositories, and admin tools
Principle of least privilege: people have access to what they need for their role, nothing more
Offboarding process: access is revoked promptly when someone leaves
Access logs: you can demonstrate who accessed what and when

Get Basic Cyber Insurance

Cyber liability insurance is increasingly expected at Series A, particularly for companies handling sensitive data. It is not expensive at early-stage, and it signals maturity to investors. Most policies cover breach response costs, legal liability, and notification expenses.

What Does a Strong Security Narrative Look Like in a Raise?

The founders who handle security due diligence best do not just answer questions. They get ahead of them. In your pitch or data room, a one-page security overview can pre-empt most investor questions and demonstrate that security is a first-class concern, not an afterthought.

A strong security overview covers:

When your last penetration test was conducted and by whom
Current compliance status (SOC 2 in progress, target date, etc.)
How customer data is stored, encrypted, and accessed
Who owns security within the company
Incident response capability and cyber insurance status

This is especially valuable if you are selling to enterprise customers. It signals that you are ready for their security questionnaires too, which often become a blocker in enterprise sales.

Series A Security Checklist

Work through this before your raise:

Penetration Testing

Penetration test completed within the last 12 months
Critical and high findings remediated and documented
Remediated pentest report available to share under NDA
Letter of attestation in hand for sharing without NDA

Compliance

SOC 2 roadmap defined with target dates
Compliance partner or auditor engaged (or shortlisted)
Core security policies documented and dated

Access Controls

MFA enforced across all team members and critical systems
Production access limited to those who need it
Access provisioning and offboarding process documented
Access logs available and reviewed

Data Handling

Data flows mapped: where data lives, how it moves
Encryption in transit (TLS) and at rest confirmed
Data retention and deletion policy documented

Incident Response

Incident response plan written (even a one-pager)
Internal escalation path defined
Cyber insurance policy in place

Due Diligence Readiness

Security overview document prepared for data room
Pentest report available to share under NDA
CTO or technical founder briefed to handle security Q&A

Frequently Asked Questions

Do I need SOC 2 before raising a Series A?
No. Most Series A investors do not require a completed SOC 2. What they want is evidence that you are on a credible path toward it. Having a pentest done, policies documented, and a target SOC 2 date is enough for the majority of institutional investors at this stage.

What if our pentest found serious vulnerabilities?
Fix them before your raise if possible, and document the remediation. A report showing critical findings that have been resolved is not a red flag. It shows your security process is working. What investors do not want to see is a report with unaddressed critical findings, or no report at all.

How long before my raise should I get a pentest done?
Ideally 3 to 6 months before you start investor conversations. This gives you time to remediate findings, get a retest confirming closure, and have a clean report ready for due diligence. Rushing a pentest during active fundraising is stressful and leaves no room to address what is found.

Will investors share our pentest report with other parties?
Standard practice is to share pentest reports under NDA. Reputable funds treat security information as confidential. You can and should request an NDA before sharing any security documentation during due diligence. The letter of attestation is designed for situations where you need to confirm a pentest happened without sharing the full findings.

Do investors require an independent pentest, not an internal test?
For evidence of independence, they usually expect a third-party report. The letter of attestation and test firm name on the report are what they look for first.

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