Facilitator Guide

Due Diligence for Venture Deals

Facilitator Guide

Due Diligence for Venture Deals

Topic: Venture Financing
Duration: 1 hr
Format: Remote or in person

What’s covered

The role of due diligence in a venture deal
The scope of business and legal due diligence
The legal due diligence process
Reviewing the charter and corporate governance issues
Cap table tie-outs
Reviewing intellectual property matters
The review of other miscellaneous issues

Before the session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/trainings/due-diligence-for-venture-deals/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

Course

Due Diligence for Venture Deals

A summary of the business and legal due diligence that parties conduct in a venture financing deal. Includes what to look for when reviewing key areas such as corporate governance and intellectual property, as well as an explanation of a cap table tie-out.
Exercise
PDF

During the session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

What’s the scope of due diligence in early equity rounds? How does it change in later rounds?
What’s the general process for a legal due diligence review?
What are some key areas to review in a company’s certificate of incorporation?
What’s a cap table tie-out and why is it important?
What are the main things to look out for to check whether a security was properly issued?
What should you pay attention to when reviewing an option plan?
What would you want to know about founder and employee equity?
What should you look out for when reviewing material agreements?
What are some issues to look out for when reviewing intellectual property matters?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
General practice tips (dos and don’ts)
Firm-specific guidance and practices

After the session

To continue their learning, attendees can check out related courses in Hotshot’s Venture Financing topic.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.