Glossary

Technical Due Diligence

Definition

Technical Due Diligence is a crucial process for evaluating the technology, software, infrastructure, and intellectual property of a startup. It aims to assess the viability, scalability, and potential risks associated with these aspects. By conducting thorough technical due diligence, investors and stakeholders can make informed decisions regarding their investments and partnerships.

Who typically performs Technical Due Diligence?

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Technical Due Diligence is often conducted by experienced technology professionals, including software engineers, system architects, cybersecurity experts, and intellectual property lawyers. They possess the necessary expertise to evaluate the technical aspects of a startup comprehensively.

When should Technical Due Diligence be performed?

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Technical Due Diligence is typically conducted during the due diligence phase of investment or partnership negotiations. It is essential to perform this evaluation before finalizing any agreements to ensure a clear understanding of the startup's technical capabilities and risks.

What are the potential risks identified during Technical Due Diligence?

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Technical Due Diligence may uncover risks such as outdated technology, poor code quality, scalability limitations, inadequate infrastructure, intellectual property disputes, or potential cybersecurity vulnerabilities. Identifying these risks allows investors and stakeholders to make informed decisions and mitigate potential issues.

How long does Technical Due Diligence usually take?

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The duration of Technical Due Diligence varies depending on the complexity of the startup's technology and the depth of the evaluation. It can range from a few weeks to several months, ensuring a comprehensive assessment of all relevant technical aspects. ‍

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