CleanTech · Growth Stage Due Diligence

CleanTech Growth Due Diligence Checklist

The complete Growth due diligence checklist for CleanTech startups. Prepare your data room, anticipate every investor request, and close your round faster.

All Checklists

8–16 weeks

Typical DD Timeline

DD Categories Covered

50+

Checklist Items Total

CleanTech Regulatory DD Context

Cleantech DD includes an independent engineer (IE) report for physical assets. This typically takes 4–6 weeks and is investor-commissioned. Prepare project data packages that match ASTM standards.

Data Room Essentials for Growth

Documents to have ready before DD begins

3–5 years PCAOB-audited financials
Quality of Earnings report
All material contracts with change-of-control provisions flagged
Complete regulatory compliance documentation by jurisdiction
D&O insurance with adequate limits
Full cap table through all exit scenarios
Board committee charters and governance policies

LEGALLegal Due Diligence

Pre-IPO or strategic acquisition-grade legal review. Includes securities law compliance, international regulatory analysis, and potential anti-trust review for strategic transactions.

General Legal Items

Certificate of Incorporation and all amendments
Bylaws and any shareholder agreements
Cap table with fully diluted ownership by class
All convertible instruments (SAFEs, notes, warrants)
Option pool documentation and all grants
Founder IP assignment agreements
Co-founder agreements and vesting schedules
Material third-party agreements

CleanTech-Specific Legal Items

Environmental permits (federal, state, local) by project
Interconnection agreements with utilities
Offtake agreements (PPAs, REC contracts)
Land lease or easement agreements for physical assets
EPA regulatory compliance and environmental audit history

FINANCIALFinancial Due Diligence

PCAOB-audited financials. Quality of earnings (QoE) report from Big 4. Full revenue recognition analysis (ASC 606). Detailed working capital and free cash flow analysis.

General Financial Items

Financial statements (P&L, balance sheet, cash flow)
Bank statements (12+ months)
Accounts receivable aging report
Accounts payable aging report
Payroll records and headcount history
Revenue recognition policy documentation
Tax returns and any outstanding tax obligations
Insurance policies (D&O, E&O, general liability)

CleanTech-Specific Financial Items

Project finance model for each asset under development
IRA tax credit eligibility analysis (ITC, PTC, 45X)
Offtake counterparty credit quality review
LCOE by project cohort and vintage
Government grant and DOE loan guarantee status

PRODUCTProduct and Technical Due Diligence

Technology performance validation by independent engineer
O&M cost history and warranty documentation
Grid interconnection queue position and timeline
Supply chain risk and critical materials sourcing
Environmental impact assessment results

MARKETMarket Due Diligence

Policy risk assessment by jurisdiction (IRA stability, state RPS)
Utility relationship quality and interconnection track record
Corporate PPA demand pipeline quality
Competitive LCOE vs. incumbent energy sources by geography

TEAMTeam Due Diligence

Independent director background review. Compensation benchmarking study. Succession planning documentation review.

LinkedIn profiles for all founders and officers
Employment agreements for key personnel
Equity grant history and vesting schedules
Any prior employer IP invention disclosure forms
Non-compete and non-solicitation agreements
Professional reference contacts (3+ per founder)
Advisory board agreements and equity grants
Organizational chart as of current date

Frequently Asked Questions

How long does Growth due diligence typically take for CleanTech startups?

CleanTech Growth due diligence typically takes 8–16 weeks. Pre-IPO or strategic acquisition-grade legal review. Includes securities law compliance, international regulatory analysis, and potential anti-trust review for strategic transactions. Having a complete data room ready before DD kicks off can reduce this timeline by 30–50%.

What CleanTech-specific items do investors review during Growth DD?

For CleanTech at the Growth stage, investors focus heavily on: Environmental permits (federal, state, local) by project, Interconnection agreements with utilities, and Project finance model for each asset under development, IRA tax credit eligibility analysis (ITC, PTC, 45X). Cleantech DD includes an independent engineer (IE) report for physical assets. This typically takes 4–6 weeks and is investor-commissioned. Prepare project data packages that match ASTM standards.

What should I put in my data room?

Your Growth data room should include: 3–5 years PCAOB-audited financials; Quality of Earnings report; All material contracts with change-of-control provisions flagged; Complete regulatory compliance documentation by jurisdiction; D&O insurance with adequate limits; Full cap table through all exit scenarios; Board committee charters and governance policies. Use a structured folder system that mirrors investor expectations — most institutional investors use a standard folder taxonomy.

What are the most common due diligence deal-killers?

The five most common DD deal-killers are: (1) undisclosed founder litigation or criminal history, (2) IP ownership gaps — particularly for university-origin technology, (3) customer contract terms that prevent assignment on change of control, (4) cap table math errors or undocumented equity grants, and (5) financial restatements required after revenue recognition review.

What team due diligence should I expect at the Growth stage?

Independent director background review. Compensation benchmarking study. Succession planning documentation review.

Download the Full Checklist

Get the CleanTech Growth due diligence checklist as a Google Sheets or Notion template. Track completion status for every item in your data room.

Includes data room folder template, investor question tracker, and reference FAQ guide

Other CleanTech Stages

Pre-Seed Seed Series A Series B