ESG Due Diligence for VCs & Series A+: red flags before signing
Material sustainability risks and impact metrics, externally validated, in four to five weeks. Decision-ready for the investment committee (IC) and exit-proof. Because I invest in startups myself, I deliver the memo in the language decisions are made in at the IC table.
From €9,000 fixed price· 4 to 5 weeks, express 2 to 3· Prepared by me personally
The warning signals I check systematically
Data in data rooms is often wishful thinking. Material risks hide in company culture, in missing processes and in what is not documented. Hence interviews instead of questionnaires.
Governance
Unclear IP ownership without assignment agreements, no independent board or advisory board, no GDPR structure, no whistleblowing system, no separation of company and private assets at founder level.
Social
Tech team turnover above 30 percent a year, false self-employment among freelancers, unadjusted gender pay gap above 15 percent, no labour rights compliance in the supply chain.
Environment
Emissions higher than established solutions without an externally verified LCA, greenwashing in marketing without certificates, no Scope 3 transparency despite a significant supply chain, raw materials from conflict regions without due diligence.
Green premium, brown discount: ESG-mature companies consistently achieve a premium at exit, ESG laggards a discount, the difference is 15 to 25 percent of the exit multiple. A single scandal, whether working conditions, greenwashing or data protection, can make follow-on funding impossible. The €9,000 is not a compliance item but risk assessment against loss of value.
I reconcile what is materially needed for the IC decision with what a Series A startup can actually deliver under VSME. The gap in between is not a footnote, it is part of the memo.
Decision-ready for the investment committee
Not a score from a questionnaire, but a reasoned go/no-go recommendation with external confirmation.
One page for decision-makers, then the matrix of financial and impact materiality, detailed findings by E, S and G with PAI indicators as evidence.
Do-no-significant-harm thresholds checked systematically, physical and transition climate risks per TCFD: server location in a flood zone, business model with an all-combustion fleet, cloud footprint without a plan.
Prioritised measures, go/no-go with risk assessment, mapping to the planned SFDR 2.0 product categories. The proposal is in the EU legislative process, application expected from 2028.
From initial review to memo in 4 to 5 weeks
The timeframe is deliberately compact. Transaction deadlines are tight, due diligence phases short.
Week 1: kick-off and initial review
Data room access, document review against exclusion criteria, interview scheduling with key people, materiality framework set.
Weeks 2 to 3: due diligence
Interviews with 3 to 5 key people (founders, CTO, CFO, operations, people), 45 to 60 minutes each. Double materiality, climate risk screening, DNSH review, closing data gaps.
Weeks 4 to 5: memo and handover
Consolidation, materiality matrix, risk assessment, go/no-go. Final review with the deal team, presentation, Q&A preparation for the IC.
Express in 2 to 3 weeks for a €6,000 surcharge when the term sheet cannot wait. For tight deadlines you reach me directly on WhatsApp.
Who the memo is meant for
For everyone who wants to know material sustainability risks before signing, not after.
Article 8/9 funds and growth VCs
Funds that need audit-proof data for LP reporting, corporate VCs with parent-company ESG standards, funds ahead of the next closing.
Series A+ in a funding phase
Companies that want to differentiate on ESG before the round, startups ahead of M&A processes, climate-tech startups pitching to Article 9 funds that need evidence for avoided emissions.
Strategic buyers and M&A teams
Investors who want to minimise post-merger integration costs and need external confirmation for internal committees.
Why me
I invest in climate-tech startups myself. I know what an ESG due diligence feels like from both sides of the term sheet, and that a Series A startup cannot have corporate compliance, while the materiality assessment still has to be robust.
Senior expertise with a sense of proportion for early-stage realities instead of a junior checklist. A direct line instead of rotating teams.
ESG Due Diligence
For Series A+ investments and M&A transactions. Price scales with deal size and scope.
ESG Due Diligence
- ✓Full ESG risk assessment E, S, G
- ✓Regulatory compliance check
- ✓Stakeholder interviews, 3 to 5 people
- ✓Climate risk screening per TCFD
- ✓DNSH review and deal-breaker identification
- ✓Investment Committee memo with go/no-go
What ESG data a Series A startup can deliver
Regulation asks for audit-ready, ESRS-grade data. A Series A startup, however, is an SME and reports, if at all, under VSME. Whoever expects audit-proof ESRS data reviews past reality. I assess what is materially necessary against what the startup can deliver and name the gap as a risk, not a footnote.
What I don’t do: send questionnaires and generate scores. Material risks such as unclear IP rights, tech team turnover or greenwashing without a verified LCA only become visible in conversation. Hence interviews, hence external confirmation.
Schedule a call
Tell me the stage, deal size and deadline. In the free first call we settle scope, timeline and whether express is needed. For tight deadlines you reach me directly on WhatsApp.
Frequently asked questions
What is a sustainability risk and why a systematic review?
An environmental, social or governance event that, if it occurs, materially reduces the value of an investment. LPs demand audit-proof portfolio data by the next closing at the latest, exit buyers price material ESG risks into valuations or treat them as deal-breakers.
What sets this apart from automated ESG tools?
Tools send questionnaires and generate scores. I run interviews with key people and materiality assessments. No score detects unclear IP rights, turnover above 30 percent or greenwashing without an LCA.
What is SFDR 2.0 and why does it matter?
The European Commission’s proposal replaces the Article 6/8/9 categories with new product labels with minimum quotas and exclusion criteria for fossil activities. Application expected from 2028. The memo already maps findings to the planned categories.
How is €9,000 justified?
Against an exit discount of 15 to 25 percent, against post-deal integration of undetected risks costing ten times as much, and against a failed follow-on round, the amount is negligible. The price scales with deal size and scope.
How does the 4 to 5 week process run?
Week 1 kick-off and initial review, weeks 2 to 3 interviews and assessment, week 4 consolidation and memo draft, week 5 final review and handover. Express in 2 to 3 weeks for a surcharge.
Which startups is this for?
Series A+ in active funding, startups ahead of M&A processes, B2B companies facing ESG evidence requests from key accounts, climate-tech and impact startups pitching to Article 9 funds. Pre-seed usually not, a conversation is enough there, and I say so.
When is the signing?
Tell me the stage, deal size and deadline. Within 24 hours you know whether standard or express fits and what I need from the data room.