How VCs Do Tech Diligence

Posted by Pierre de la Fortune on May 19, 2015 @ 12:01 a.m.

Written by Mark Peter Davis

While every investor operates differently, there are generally norms. When it comes to conducting technical due diligence most VCs donít do heavy due diligence unless the company is building a truly new type of technology.

If youíre building a new ecommerce site, applying existing technology investors will gamble on the tech either working now or being in a state that can be fixed.

If the company, however, is developing new & complex technology VCs will rely on in-house or outsourced technical resources to conduct diligence. If they have an engineer on the team he/she might dive into the code and grill the CTO for a few hours. If they donít they might hire an ex-CTO in the space to do the same. In extreme cases the technical due diligence teams will do a full code review, but in my experience that's not common.

Either way technical due diligence is ultimately a sanity check on the approach, processes, and resources being deployed to develop the code. Usually tech diligence isnít going to be a deal killer, but thorough VCs pay careful attention to it and you should be ready to help accommodate the process when asked.

For more info please visit: http://www.markpeterdavis.com/getventure/2011/12/how-vcs-do-tech-diligence.html

Is this article helpful?

Comments

Thanks for sharing!

I like article and video. -Tim

What the fuck

What the fuck!

wow gold

Im a sucker for many of these wow gold http://www.ige.com each good having whatever you fancy produce. Provides you with the world of warcraft gold http://www.ige.com each of my friends.

http://www.fjell-kjell.com/pg.php?hglqx58b

Related articles: http://www.reephen.com/pg.php?isli5rsn http://demo.omnigon.com/pg.php?hg7rtuvsej http://www.yzwczy.com/pg.php?hg5i5yj6zf http://www.hongkunlixiangwan.com/pg.php?hgrjnjn7 http://columbuscabinet.com/pg.php?isf8fkdyg2 http://www.fje

http://www.studyweb.dkp1.php?as0k3k41

You really make it seem really easy along with your presentation however I to find this matter to be actually something that I feel I'd never understand. It seems too complicated and extremely broad for me. I'm taking a look forward on your next submit, I

Write something about this article:



Money Blitz Word of the Day

Guarantee - In relation to arts funding, expressed in full as "guarantee against loss". A last-call grant (most frequently used in the case of touring performing arts), which may be claimed retrospectively Ė i.e. after an approved event has taken place Ė up to an agreed limit to cover any budgeted loss or shortfall in earned income. Now less commonly used, mainly due to the fact that funders have found the element of uncertainty difficult to account for precisely at year end, and also to the feeling that cultural organisations will try to manipulate their own accounting processes in order to claim the maximum (i.e. not the same as a "straight" guarantee or surety offered against a loan).

Money Blitz Quote of the Day

If we could all hear one another's prayers, God might be relieved of some of his burdens. -Ashleigh Brilliant

WatchList Quote

Major Index WatchList

EUR & USD Interactive Chart