Carrying out technical due diligence is comparable to a thorough inspection. It allows for a careful examination of the company’s technical foundations.
This process includes reviewing aspects like product architecture, code quality, and development processes to assess whether the technology is stable and future-proof. By lifting the hood and inspecting the company’s technical machinery, potential weaknesses and risk areas can be identified.
An important part of this is evaluating the team and the expertise of those who develop and maintain the technology. Do they have the right knowledge and experience to build a scalable and maintainable product?
Additionally, aspects such as infrastructure, data security, and user experience are examined to ensure the product meets standards.
Intellectual property, such as patents and licenses, is also scrutinized thoroughly. Clarifying the legal aspects reduces the risk of unpleasant surprises later on.
The goal of technical due diligence is to create a clear picture of the company’s technical status and future potential. With this information, an investor can make an informed decision and feel confident in their purchase.