For a startup seeking Series A investment, what specific document category within a virtual data room is most frequently reviewed first by a venture capital firm during initial due diligence to assess legal and structural readiness?

The specific document category most frequently reviewed first by a venture capital firm during initial due diligence to assess legal and structural readiness is the Capitalization Table, commonly referred to as the Cap Table. A Capitalization Table is a comprehensive document that meticulously lists all of a company's equity securities, including common stock, preferred stock, stock options, warrants, and convertible notes, detailing the holders of each, the number of shares or units they possess, and their corresponding percentage of ownership on both an undiluted and fully diluted basis. Venture capital firms prioritize reviewing this document initially because it provides a foundational and immediate understanding of the company's entire ownership structure. This allows them to quickly ascertain who owns what percentage of the company, evaluate the potential dilution that their new investment would entail, identify any existing complex equity arrangements such as specific investor rights or unusual share classes, and ultimately assess the clarity and soundness of the company's fundamental legal and equity-based structure, which is paramount for determining its readiness for a Series A investment.