Technical Due Diligence
Our technical due diligence process starts with understanding your investment objectives. With your guidance we construct a technical due diligence scope that typically involves evaluation of the target company’s technology, organization, and process. This evaluation is typically performed onsite in one day but it can be done remotely for special cases.
Our technical due diligence process focuses on the following areas asking these types of questions:
Technology
- Can the technology scale to expected growth levels?
- Is the system designed to be highly availability?
- Is the technology design and implementation cost efficient?
etc…
Organization
- Are the individuals involved knowledgeable about industry best practices?
- Are the teams organized properly for fast TTM?
- Are the teams incentivized properly?
- How are the teams measured?
etc…
Process
- Are industry best practices being followed?
- How are features and stories prioritized?
- Are appropriate metrics in place?
etc…
Security
- Are code scans and penetration tests being conducted?
- Is security training occurring on a regular basis?
- Are there adequate security policies in place?
- Are industry best practices around access control in place?
etc…
If you’re looking for a checklist to help you perform your own diligence, feel free to use ours. If you’re wondering more about our diligence practice, you may be interested on our thoughts on best practices, or our beliefs around diligence and how to get it right.
No matter the size of company or size of investment, we can help. We’ve performed technical diligence for seed rounds, A-series and beyond, carve-outs, strategic investments and taking public companies private. From $5 million invested to over $1 billion.
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