4 Start-up’s Fraud Proofing

What is it?

The Fraud Proofing Startup Program assists the new age revenue- positive startup world with Forensic Audit practices that could help create a robust financial hygiene that strengthens your advanced Fund Raise from the most stringent professional investors.

Kofounderz Team will assist the founders in being prepared before the qualified professional investors step in so that there are no unwanted leakages and loopholes that can put the startup at the risk of being susceptible to unseen vulnerabilities or unethical practices. The Forensic approach helps in filling out these gaps that will mitigate specific threats and provide a safety net for both founders and investors.

Once the Fraud Proofing Exercise is conducted, the startup is set to it’s best foot forward in front of the investors who can then assess their real readiness to face the sharpest Due Diligence team of Large professional firms and Investors. The Programme is tiered in such a way that there is a classroom session just to familiarize you with chinks you need to look for, a second level One-on-one Intervention should you want us to take a deeper dive and finally an audit is commissioned only if its mutually established as a need in the first two conversations. All this in easy pay-as-you-go format.

Who is it for?

Angel Investors

Venture Capitalists

Series A+ Founders



  • Identification of loopholes pre pitching enhances the probability of successful deals
  • Investor security is established with such practices
  • For founders this activity can lead to achieving growth faster
  • Enhanced awareness about several business aspects and potential risks


Who is it meant for?

Existing investors keen to help their investee companies with further fundraises or Startup founders about to embark on Series funding are likely to benefit the most from this program.

Aren't Forensic audits done when there are scams or frauds usually? Isn't this a scary witch-hunt for Startups?

It is true that Forensic Audits are done post major scams but the program we have created is neither scary nor a witch hunt. Its a program undertaken voluntarily to identify the chinks , loopholes and weaknesses in financial and operational set up that could allow fraudulent or unethical practices and workflows to be nipped in the bud.

Isn't all this covered during Due Diligence in any case, why is there a need for a separate forensic audit?

The scope and need for DD is very different and is usually done by an incoming investor. The forensic audit can be done as a part of readiness by the founders even before an investor arrives on the scene to ensure that there are no leakages , loopholes that have escaped the founders and the management team’s attention. A forensic audit will allow the founders to identify and plug vulnerabilities to a large extent and put their best foot forward in front of potential Investors. The comfort that potential investors will have with the hygiene put in place by founders could in itself result in higher pre-investment comfort.

This sounds a costly proposition and a prohibitively expensive exercise, right?

The classroom session we will launch soon to introduce founders to the is going to be priced very reasonably possibly in three digits. Founders keen to explore the suitability of fit for their organisations could enroll for a One on One intervention that comprises of two sessions of two and a half hours each and it could be under ten thousand rupees. The full fledged audit undertaken depending on the scope and with mutual discussion and agreement with Founders could cost anywhere between a couple of a lac to say five lacs rupees. If a fundraise Due Diligence exercise for a few crores or couple of million dollars of investment is going to be easier and far smoother because of this exercise, it can hardly be called prohibitive considering the stakes.

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