CleanTech · Seed Stage Due Diligence

CleanTech Seed Due Diligence Checklist

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

All Checklists

2–4 weeks

Typical DD Timeline

5

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 Seed

Documents to have ready before DD begins

  • Certificate of Incorporation and all amendments
  • All SAFE/convertible note agreements
  • Cap table with fully diluted ownership
  • 12 months bank statements
  • All customer contracts over $10K ARR
  • IP assignment agreements for all employees
  • Option pool documentation

LEGALLegal Due Diligence

Full corporate structure review including subsidiary entities, convertible note terms, and any prior investment documentation. SAFE/note review for conversion math.

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

12 months of bank statements, revenue reconciliation, and a reviewed financial model with actuals vs. plan comparison. No full audit expected.

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

Reference calls for all co-founders and any C-suite hires. Employment contract review. Equity vesting schedule verification.

  • 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 Seed due diligence typically take for CleanTech startups?

CleanTech Seed due diligence typically takes 2–4 weeks. Full corporate structure review including subsidiary entities, convertible note terms, and any prior investment documentation. SAFE/note review for conversion math. 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 Seed DD?

For CleanTech at the Seed 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 Seed data room should include: Certificate of Incorporation and all amendments; All SAFE/convertible note agreements; Cap table with fully diluted ownership; 12 months bank statements; All customer contracts over $10K ARR; IP assignment agreements for all employees; Option pool documentation. 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 Seed stage?

Reference calls for all co-founders and any C-suite hires. Employment contract review. Equity vesting schedule verification.

Download the Full Checklist

Get the CleanTech Seed 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