What Security Documents Are Needed For Due Diligence?
The security documents needed for due diligence typically include security policies, compliance certifications (e.g., SOC 2, ISO 27001), risk assessments, incident response plans, vendor management records, and evidence of data protection controls. Investors and acquirers request these documents to verify that your company can securely manage sensitive data, comply with regulations, and reduce operational risks before funding or acquisition.
Why Security Documents Matter in Due Diligence?
- Investor confidence – Provides assurance that your startup has a mature security posture.
- Regulatory compliance – Ensures adherence to GDPR, HIPAA, PCI DSS, and other frameworks.
- Risk mitigation – Demonstrates preparedness for cyber threats, data breaches, and audits.
- Deal acceleration – Having documents ready speeds up due diligence and reduces friction.
Key Security Documents Needed for Due Diligence
1. Compliance & Certification Evidence
- SOC 2 Type I/II reports (must include auditor and scope details)
- ISO 27001 certification with Statement of Applicability
- GDPR documentation: RoPA, DPIAs, privacy notices, DPA agreements
- HIPAA security/privacy policies if handling PHI
- PCI DSS Self-Assessment Questionnaire (SAQ) or AOC (if applicable)
2. Core Security Policies
- Information security policy
- Access control policy (user roles, least privilege, MFA)
- Data encryption policy (data at rest, in transit, key management)
- Incident response policy (breach response procedures)
- Business continuity and disaster recovery (BC/DR) policy
- Acceptable use and employee security training policies
3. Risk Management Documentation
- Risk assessment reports (including third-party/vendor risk assessments)
- Vulnerability management process (patching, scanning reports)
- Penetration test reports from external auditors
4. Monitoring and Operational Evidence
- System and activity logs (showing monitoring practices are in place)
- Security awareness training records
- Vendor management documentation (third-party contracts, due diligence checklists)
- Change management records (how updates and deployments are handled securely)
5. Legal & Regulatory Documentation
- Data processing agreements (DPAs) with vendors and partners
- Privacy notices shared with customers
- Records of processing activities (RoPA) for GDPR compliance
- Subprocessor lists for SaaS businesses
Investor & Acquirer Focus During Security Due Diligence
| Document Category | Examples Investors Will Ask For |
|---|---|
| Certifications & Reports | SOC 2, ISO 27001, HIPAA, PCI DSS, GDPR documentation |
| Policies | Logs, employee training records, monitoring, and scanning reports |
| Risk Management | Risk assessments, vendor risk management, penetration test reports |
| Operational Evidence | Logs, employee training records, monitoring and scanning reports |
| Legal & Privacy | DPAs, privacy notices, GDPR RoPA, subprocessor lists |
Best Practices for Preparing Security Documents
- Centralize documentation in a compliance management system or data room.
- Keep policies updated and ensure they reflect actual practices.
- Use third-party attestations (auditors, pen test firms) for credibility.
- Align document preparation with investor expectations (SOC 2 for SaaS, HIPAA for healthcare, etc.).
- Be ready to provide evidence of continuous monitoring, not just point-in-time reports.
Sprinto helps startups prepare all security and compliance documentation for due diligence by automating SOC 2, ISO 27001, GDPR, and HIPAA readiness. With centralized policies, real-time monitoring, and audit-ready reports, Sprinto enables startups to respond to investor and acquirer requests quickly and confidently.
