Experienced Legal Team for VC Due Diligence

Our attorneys have led hundreds of due diligence processes for venture capital transactions. We identify legal, structural, and compliance risks early—strengthening negotiations and reducing post-closing exposure.

Schedule a Consultation

How Our Due Diligence Process Works

A structured, efficient review designed to uncover risks and validate the integrity of your transaction.

01

Document Collection

We gather and organize all corporate documents, contracts, intellectual property records, financial statements, regulatory filings, and compliance materials.

02

Comprehensive Review

Our attorneys analyze corporate structure, governance, contracts, capitalization, IP ownership, employment agreements, and compliance status to detect inconsistencies or liabilities.

03

Risk Assessment

We evaluate legal and regulatory risks, operational exposure, outstanding liabilities, compliance gaps, and issues that may affect investor confidence or future operations.

04

Detailed Report

We deliver a clear, comprehensive due diligence report outlining findings, red flags, recommendations, and actions required to mitigate identified risks.

Ready to Start Your Due Diligence Review?

Start Due Diligence
Common Questions

Due Diligence FAQs

A term sheet is a non-binding document that outlines the key economic and governance terms of a venture capital investment. It serves as the roadmap for definitive agreements and addresses critical items such as valuation, equity percentage, liquidation preferences, board structure, investor rights, and protective provisions. Although non-binding, the term sheet sets negotiating expectations, establishes deal structure, and prevents misunderstandings before moving into detailed legal documentation.

A SAFE (Simple Agreement for Future Equity) is a contract that converts to equity during a future priced round, typically without interest or a maturity date. Convertible notes are debt instruments that accrue interest and convert to equity, usually at a discount or valuation cap. Equity financing involves issuing actual shares immediately as part of a priced round. Each instrument has different implications for valuation, dilution, control, and tax treatment. We help you determine the best option based on your fundraising strategy and stage.

The core legal documents typically include: a term sheet, stock purchase agreement, amended and restated charter, investor rights agreement, voting agreement, right of first refusal and co-sale agreement, board consents, and ancillary corporate approvals. The exact package varies depending on round type (Seed, Series A, etc.), investor requirements, and company structure. We prepare, negotiate, and review all necessary documentation to ensure compliance and protect your long-term interests.

Due diligence is the process investors use to verify the legal, financial, operational, and technical condition of a company before investing. Founders should prepare corporate records (charter, bylaws, minutes), an accurate cap table, financial statements, material contracts, IP assignments, employment agreements, regulatory filings, tax records, and any documentation related to risk or liabilities. Being organized can significantly accelerate closing and improve investor confidence.

Yes. All fundraising activity must comply with federal securities laws (SEC regulations) and applicable state “blue sky” laws unless a valid exemption applies. Common exemptions include Regulation D (Rules 504, 506(b), and 506(c)) and Regulation S for offshore offerings. Non-compliance can lead to rescission rights, penalties, or enforcement actions. We help ensure your offering is structured and documented correctly under all applicable securities laws.

A venture capital fund is an investment vehicle that pools capital from limited partners (LPs) to invest in startups. Most VC funds are structured as limited partnerships, where the fund manager acts as the general partner (GP) and LPs provide capital and receive economic returns. The structure typically includes the fund entity, a GP entity, and often a management company entity. We help establish fund structures, draft partnership agreements, and ensure full compliance with securities and tax regulations.

Investors commonly negotiate rights such as board seats or observer rights, information rights, pro rata participation rights, liquidation preferences, anti-dilution protection, protective provisions, drag-along and tag-along rights, and registration rights for future public offerings. The scope of rights depends on negotiation dynamics, investor type, and round stage. We help founders and investors negotiate balanced structures aligned with long-term company goals.

A standard VC fundraising process runs 2–4 months, depending on investor interest and company preparedness. Typical stages include investor outreach (2–4 weeks), term sheet negotiation (1–2 weeks), due diligence (3–6 weeks), and legal documentation and closing (2–4 weeks). Having organized documents, a clean cap table, and updated financials can significantly reduce the overall timeline.

Valuation determines the company’s value for purposes of issuing new shares. Pre-money valuation is assessed before the investment; post-money valuation includes the new capital. Dilution occurs when new shares are issued, reducing existing shareholders’ ownership percentages. Terms such as option pool expansion, valuation caps, and anti-dilution protections can affect dilution. We help founders and investors understand and negotiate valuation mechanics to achieve fair outcomes.

Yes. We represent founders, startups, angel investors, venture capital funds, and family offices in a wide range of VC transactions. For startups, we assist with fundraising strategy, negotiations, and legal documentation. For investors, we conduct due diligence, negotiate protections, and ensure proper compliance. We maintain strict ethical walls and never represent both sides within the same transaction.
Trending Topics

Due Diligence Insights & VC Industry Updates

Read More Articles