Technical Due Diligence: Everything You Need to Know

NOV 29

The journey of building a startup is far from easy. Once you have an idea, test it through an early prototype, you move to the minimum viable product stage.

What is Technical Due Diligence?

Since investing in or acquiring a company is complex, it warrants a holistic due diligence investigation. As part of the process, you help prospective investors analyze your product, architecture, processes and frameworks inside out.

Whether you are preparing for an M&A or investment from a VC firm, the other party will want to go deeper into the happenings of your company. They will want to be sure that their investment will not go down- meaning you will need to prove that you are worth their bucks.

What is the need for Technical Due Diligence?

  • They want to measure the competency of your team
  • They want to assess all risks your company is running through
  • They wish to study the technical aspects of your product/service deeply
  • They want to forecast their success with their investment
  • When investors want to join a startup, they are usually interested in finding cash leaks, technology risks and anything that is a wasted cost.
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