Venture Capital and M&A Audits

VC Due Diligence / Regulatory Audits

We bring specialised legal expertise across technology regulatory regimes that commonly affect VC portfolios and transaction targets, including:

  • Artificial intelligence. Regulatory risk tied to AI governance, transparency, safety and obligations under emerging AI rules.
  • Intellectual property (IP). Ownership, IP assignments, licensing risks and trade secrets.
  • Antitrust / Competition law. Merger control, cartel risk, distribution and technology transfer practices, and unilateral conduct exposure.
  • Privacy & data protection. GDPR, ePrivacy and industry-specific data obligations.
  • Blockchain & crypto. Token classification, custody, AML obligations and regulatory licensing risk.
  • Medical devices & regulated health products. Product classification, regulatory approvals, clinical-data governance and post-market obligations.
  • EU digital rulebooks: Including the Digital Markets Act, Digital Services Act and the EU Data Act, and their implications for platform behaviour, data access, intermediary liability and cross-border data flows.

 

In the rush to build products, hit growth metrics, and close funding rounds, many start-ups and scale-ups deprioritise basic compliance and governance items, leaving regulatory gaps that are invisible until they become expensive.

Left unchecked, these gaps lead to a spectrum of preventable harms, such as:

  • regulatory investigations and penalties,
  • injunctions that delay or block transactions,
  • expensive remediation,
  • unexpected liabilities for indemnities, and
  • reputational damage to both the portfolio company and its investors.

 

For a VC firm, those harms translate directly into:

  • diminished enterprise value,
  • erosion of limited partners’ trust,
  • difficulties in exit processes, and
  • increased deal friction (longer diligence cycles, tougher warranty negotiations, escrow demands and price adjustments).

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Typical Core Deliverables

  1. Executive summary: A short executive summary that calls out the major 3–5 material tech/regulatory risks, the likely deal impact (timing / valuation / closing conditions), and a short recommendation (proceed / proceed with conditions / do not proceed).

  2. Full tech due-diligence report. Between 10–50+ pages covering scope, method, detailed findings by topic and material contracts with legal citations, evidence references, and severity ratings.

  3. Risk matrix. A row-level spreadsheet mapping each regulatory obligation or control (e.g., GDPR, AI Act) to the company’s current status, identified gaps, severity (high/med/low), potential regulatory consequence, and recommended remediation steps and owners.

  4. Contract abstracts, redlines and annotated material agreements. Annotated copies of key agreements (MSAs, DPAs, cloud/vendor agreements, reseller/customer contracts, IP assignment templates, etc) with problem clauses highlighted and suggested redlines or negotiating points.