Starting from the definition of the hypergeometric function from Wikipedia
$$_2F_1(a,b;c;z) = \sum_{m\ge 0} \frac{(a)_m (b)_m}{(c)_m} \frac{z^m}{m!}$$
with $(q)_n$ the rising Pochhammer symbol, we see that
$$_2F_1(-n,\theta;\theta+1; 1) =
\sum_{m\ge 0} \frac{(-n)_m (\theta)_m}{(\theta+1)_m} \frac{1}{m!} =
\sum_{m=0}^n \frac{(-n)_m (\theta)_m}{(\theta+1)_m} \frac{1}{m!}$$
because when $m>n$ there is a zero term in $(-n)_m.$
Continuing
$$ \sum_{m= 0}^n (-1)^m \frac{n!}{(n-m)!} \frac{(\theta)_m}{(\theta+1)_m} \frac{1}{m!}
= \sum_{m= 0}^n (-1)^m \binom{n}{m} \frac{\theta}{\theta+m}.$$
This is the left side.
For the right side, according to Wikipedia and Mathworld we have that
$$_2F_1(a,b;c;1) = \frac{\Gamma(c)\Gamma(c-a-b)}{\Gamma(c-a)\Gamma(c-b)}.$$
This gives
$$_2F_1(-n,\theta;\theta+1; 1) =
\frac{\Gamma(\theta+1)\Gamma(n+1)}{\Gamma(\theta+1+n)\Gamma(1)}
= n! \prod_{k=1}^n \frac{1}{\theta + k} =
\prod_{k=1}^n \frac{k}{\theta + k}.$$
Addendum. A proof by induction of this identity can be found at the following MSE Post. There is another proof by Mellin transforms at this MSE Post.