Tech Due Diligence for VCs

You’ve found a promising startup. The metrics look strong, the founder is compelling, and the market is growing. But have you looked at the code?

Most VC firms rely on product demos, customer references, and financial models to evaluate deals. The technology itself - the actual product being built - rarely gets a thorough, independent assessment. That’s a blind spot.

Why VCs Need Tech Due Diligence

Technology risk is investment risk. A startup with a fragile, unscalable codebase will hit a wall - and when it does, your capital goes toward rewrites instead of growth.

Tech DD helps VCs:

• Validate technical claims - Is the AI really AI, or a spreadsheet with a chatbot skin?
• Assess founder-tech fit - Does the CTO have the skills to build what they’re promising?
• Spot scaling risks - Will the architecture hold at 10x the current load?
• Quantify technical debt - How much of your investment will go to fixing existing problems?
• Benchmark against peers - How does the engineering maturity compare to similar-stage companies?

What We Assess for VC Deals

Our VC-focused tech DD covers:

1. Architecture and design decisions - Are the foundational choices sound, or are they creating problems the team will outgrow?
2. Code quality and test coverage - Is the team writing maintainable, well-tested code?
3. DevOps and deployment maturity - Can they ship quickly and safely?
4. Security posture - Are there obvious vulnerabilities that could become headlines?
5. Team structure and key-person risk - What happens if the lead engineer leaves?
6. Product-technology alignment - Is the roadmap technically feasible?

When to Order Tech DD

For early-stage (Seed/Series A), a lightweight assessment can be done in 3-5 days. For growth-stage deals (Series B+), a more comprehensive review is warranted.

We recommend tech DD:

• Before term sheet for deals >$5M
• After term sheet / before close for smaller checks
• As part of portfolio monitoring for existing investments

Portfolio Risk Management

Tech DD isn’t just for new deals. Many VCs use periodic tech assessments to monitor portfolio companies. Early detection of technical red flags gives you time to course-correct before problems compound.

See our checklist for what to look for, or learn about the full process.

Fast, VC-Friendly Delivery

We understand the pace of VC deals. Our reports are designed for investment committees - concise, visual, and focused on what matters for the decision. No 100-page documents. Actionable insights delivered in days, not weeks.

We’ve assessed targets across SaaS, marketplaces, fintech, health tech, and deep tech. Whatever the vertical, we know what good looks like - and what should concern you.