Startup Red Flag Detector: Unusual Growth, Margins, Cap Table & Founder Claims
Spot what needs checking before you invest. Enter the startup’s claimed numbers and a few yes/no answers; the detector flags anything unusual and tells you exactly how to verify each claim, using Indian sources like GST returns and MCA filings.
QUICK ANSWERCommon startup red flags: growth that is too fast or too short-lived to trust, revenue that does not match GST returns or bank statements, gross margins far above sector norms, runway under 6 months, one customer above 30% of revenue, related-party revenue, part-time founders and founders owning under 40% early. Verify revenue three ways: bank, GST and invoice register.
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⚠️ Screening prompts, not findings of wrongdoing.
What the Startup Red Flag Detector & Claim Verifier does
✅ Rule-based flags across 8 areas
✅ Red and amber severity
✅ How to verify every claim
✅ India-specific checks (GST, MCA)
✅ Shareable diligence list
How to use the Startup Red Flag Detector & Claim Verifier
STEP 1
Enter your numbers
Type the figures you know. Every field starts with a realistic example so you can see how it works.
STEP 2
Read the result instantly
Results, tables and the plain-English explanation update as you type. No submit button, no login.
STEP 3
Test scenarios
Change one assumption at a time (valuation, growth, dilution, exit) to see what really moves the outcome.
STEP 4
Share or save
Copy the summary, send it on WhatsApp or print to PDF for your co-founders, board or investment committee.
Verify, then trust
Most founders are honest, but optimism and selective metrics are common. The point of a red-flag pass is to turn claims into specific diligence requests early, before you spend weeks on a deal.
In India, GST returns, MCA filings (financial statements, charges, director history) and bank statements give independent evidence for most revenue and company claims.
Frequently asked questions
What are red flags when investing in a startup?
Unverifiable revenue, inconsistent numbers, extreme margins, very short runway, heavy customer concentration, related-party revenue, messy cap tables, part-time founders and reluctance to share data.
How do I verify a startup’s revenue in India?
Reconcile management accounts with GST returns (GSTR-1/3B), bank statements and the invoice register, and check the latest financials filed with MCA (AOC-4).
Does a red flag mean I should not invest?
No. It means you should ask and verify. Many flags have good explanations; the response often tells you a lot about the founders.
Is this tool free? Do I need to sign up?
Yes. It is completely free, needs no login and has no usage limit. FastFee builds payment collection software; these startup and investor tools are free resources for founders, angels and fund managers.
Is my data private?
Yes. Everything you type stays in your own browser on this device (local storage). Nothing is uploaded to FastFee. Export or print a copy if you need to keep it.