A thorough due diligence investigation is indispensable in making significant growth or investment decisions, and the competition for software-based investments is intense.
The goal of TDD or Technical Due Diligence is to determine the technical state of software and/or hardware platform pragmatically and diligently.
The advantage of doing this due diligence is, it helps to have an independent perspective on the current state and determine the steps necessary, for further growth and accelerate your business.
Every company is unique and in a different stage of its life cycle. Businesses are as individualized as the entrepreneurs who run them. Put an edge on your business strategy to play to your unique strengths will let you shine in a busy marketplace.
Is your strategy making the most of your unique strengths? Do your processes match your company stage? Are the team and technology safeguarded compared to the revenue?
There is no “one size fits all” in business. While there are uniform processes used by many companies, the uniqueness of each company manifests in the outcomes.
Technical due diligence is for assessing the value of a software system - whether a system is reliable, resilient, scalable and it is compliant to relevant standards. This is being done increasingly in various industries. Buyers or investors require an independent technical assessment of the vendor’s systems. They will be interested to know whether the systems they are buying or investing in are scalable to meet future growth targets and according to relevant standards without major additional investment.
Due diligence, including technical, is an investor's duty and responsibility and not just a box to check - know what you’re getting into!
There’s a high rate of execution failures in start- or scale-ups, yet many investors skip technical due diligence or have non-technical partners talk to the CTO for a quick review. Technology must be evaluated at par with financial discipline before giving company money, often weird that investor's will put cash into teams after incredibly thorough audits of their books, but without really looking at what’s under the hood.
Technical due diligence establishes a more realistic view of the company’s technology and easily highlights cultural qualities and dysfunctions in technical teams by asking essential questions. It avoids a lot of surprises during the first board meeting after the investment. It also usually costs less than the lawyers involved in any deal.
Stories about the founding of any company begin with motivation. Whatever it was -- an idea, an epiphany or the aftermath of a mistake -- every business founder has a story about how and why they created a company, and that story inevitably includes the tribulations, milestones, pivots and hopefully successes that they faced along the way.
The question of how to ensure the success of a new company is one that we deal with daily in the tech world, and it is that knowledge that we try to glean from founders' stories.
Our professionals are committed to supporting your company as you get funded. Think about, e.g. technical candidate review or technical architecture advice and much more.... read more >