It’s not my first startup, but it is my first venture-backed one.
And if Guinness World Records ever had a category for the longest due diligence process for a seed round, I’d probably make the shortlist. What stretched over three months wasn’t a delay it was a crucible. Rather than frustration, I felt gratitude. The extended timeline wasn’t a setback; it was a gift. It gave me space to reflect, refine, and reinforce my conviction.

The Beginning

I’m Udit, 21, from IIT Patna. I’ve been building products for more than five years now.
Most of that journey was bootstrapped — from Sttabot AI to Bully AI — each project taught me how to build fast and stay grounded.

But Exthalpy was different. It felt like something I could spend the next decade of my life on.

I incorporated Exthalpy in December 2024 and pitched to Malpani Ventures on May 14, 2025.
Soon after, we received a ₹2.5 crore seed offer from their team.
A month later, MeitY (Govt. of India) came on board with another ₹40 lakh as part of the same round.

It took five full months from the first pitch to closing the round.
This article is about what I learned in that time — lessons that might save you from making the same mistakes.

1. Trusting Family for Critical Roles

I trusted a family member as our CA.
They didn’t take the company seriously. Important filings were missed, board meetings weren’t documented, and even basic legal formalities were ignored.
We would never have caught this without the diligence process.

Lesson: Don’t mix family and finance.

2. Over-Discussing Terms

I spent too much time debating the SHA and term sheet clauses.
Founders should understand every line, but early-stage investors like Malpani Ventures are usually fair.
Don’t waste weeks negotiating small points when your product still needs your attention.

Lesson: Get the deal done. Build value later.

3. Not Having a Strong CA

We didn’t just have a bad CA — we had none.
The first few months were spent fixing things we didn’t even know were broken.
A good CA doesn’t just file papers; they handle payroll, vendors, and compliance rhythm, keeping the founder free to focus on building.

Lesson: Your CA is as critical as your CTO.

4. Doing Everything Myself

Between product, diligence, tech, and hiring, I was trying to manage it all.
Compliance is not something you can multitask.
It needs time, patience, and the maturity to listen and act carefully.

Lesson: Delegate early. You can’t do everything well at once.

5. Ignoring Team Work-Life Balance

Diligence pushed me to formalise HR policies — employment agreements, holidays, incentives, PF setups.
These aren’t just paperwork. They shape how your team feels about the company.

Lesson: Treat your team like professionals, not friends.

6. Delaying IP and Trademark Filings

If your product is gaining traction, protect it.
We delayed our filings and almost lost the chance to secure our brand.

Lesson: File your trademark early. It’s your company’s identity.

7. Thinking Patents Are Pointless

I used to think patents were just corporate showpieces.
Now I realise how easy and useful provisional patents are. They’re affordable and give you time to develop a stronger IP base.

Lesson: If you build deep tech, protect it.

8. Weak Financial Hygiene

Our records were messy — spreadsheets, emails, and confusion.
It scared investors and delayed everything.
Clean books aren’t just about compliance; they reflect how seriously you run your company.

Lesson: Keep your accounts audit-ready, even when no one asks.

9. Not Having an Emergency Fund

We assumed the round would close in a month. It didn’t.
If I hadn’t saved enough to sustain operations, Exthalpy would have shut down before the funds arrived.
Founders need an emergency cushion for both personal and company expenses.

Lesson: Cash is oxygen. Keep a spare tank.

Final Thoughts

Diligence isn’t just about checking boxes.
It’s a mirror that shows how ready you are to build something real.

If you’re raising your first round, slow down and get your house in order before you invite investors in.
Because what diligence exposes isn’t your startup’s flaws — it’s your founder maturity.