Gaming · Series A Stage Due Diligence

Gaming Series A Due Diligence Checklist

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

All Checklists

4–8 weeks

Typical DD Timeline

5

DD Categories Covered

50+

Checklist Items Total

Gaming Regulatory DD Context

Gaming DD includes age verification and loot box compliance review. Regulation varies significantly by jurisdiction (Belgium, Netherlands have banned certain mechanics). Disclose your player base geography and any regulatory exposure.

Data Room Essentials for Series A

Documents to have ready before DD begins

  • 2–3 years of financial statements (audited preferred)
  • All customer contracts and MSAs
  • IP ownership documentation and patent portfolio
  • All employee offer letters and equity agreements
  • Board minutes for all meetings
  • All material third-party agreements
  • Data room access log maintained

LEGALLegal Due Diligence

Full legal review by investor counsel covering all corporate documents, IP ownership, key contracts, employment agreements, and regulatory compliance. Takes 4–6 weeks.

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

Gaming-Specific Legal Items

  • Music, image, and content licensing agreements
  • In-game advertising and sponsorship contracts
  • App Store and platform agreements (Apple, Google, Steam, console)
  • COPPA compliance for games with under-13 users
  • Loot box and gambling regulation compliance by jurisdiction

FINANCIALFinancial Due Diligence

Full financial audit or reviewed financial statements (Big 4 or regional firm). Full unit economics model with cohort analysis. Multi-year financial model reviewed by FP&A.

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)

Gaming-Specific Financial Items

  • ARPDAU and ARPU trend by title and platform
  • User acquisition cost (CPI) by channel and creative
  • D1/D7/D30 retention cohorts for each major title
  • Live operations revenue and event economics
  • Platform revenue share and gross margin by distribution channel

PRODUCTProduct and Technical Due Diligence

  • Platform certification history (App Store, PEGI, ESRB ratings)
  • Anti-cheat and fraud detection system documentation
  • Server infrastructure capacity and scaling documentation
  • Content pipeline and release schedule feasibility
  • Analytics and A/B testing infrastructure

MARKETMarket Due Diligence

  • Competitive benchmarking vs. top-grossing games by genre
  • Organic vs. paid user acquisition mix trend
  • IP licensing potential (merchandise, adaptation)
  • Platform concentration risk (single vs. multi-platform)

TEAMTeam Due Diligence

Formal background checks for all officers and directors. Reference calls with 5–8 professional contacts per founder. Prior employer 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 Series A due diligence typically take for Gaming startups?

Gaming Series A due diligence typically takes 4–8 weeks. Full legal review by investor counsel covering all corporate documents, IP ownership, key contracts, employment agreements, and regulatory compliance. Takes 4–6 weeks. Having a complete data room ready before DD kicks off can reduce this timeline by 30–50%.

What Gaming-specific items do investors review during Series A DD?

For Gaming at the Series A stage, investors focus heavily on: Music, image, and content licensing agreements, In-game advertising and sponsorship contracts, and ARPDAU and ARPU trend by title and platform, User acquisition cost (CPI) by channel and creative. Gaming DD includes age verification and loot box compliance review. Regulation varies significantly by jurisdiction (Belgium, Netherlands have banned certain mechanics). Disclose your player base geography and any regulatory exposure.

What should I put in my data room?

Your Series A data room should include: 2–3 years of financial statements (audited preferred); All customer contracts and MSAs; IP ownership documentation and patent portfolio; All employee offer letters and equity agreements; Board minutes for all meetings; All material third-party agreements; Data room access log maintained. 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 Series A stage?

Formal background checks for all officers and directors. Reference calls with 5–8 professional contacts per founder. Prior employer verification.

Download the Full Checklist

Get the Gaming Series A 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 Gaming Stages