Things you must understand for technical and business due diligence
Technical diligence starts when a startup or company has been approved for outside capital, but needs to be inspected to insure the value of the technology is “good enough” to accept investment. The average startup has something like 1/100 odds of receiving funding once they pitch a VC firm, which is why if investment is offered the ball shouldn’t be dropped during technical diligence. Most issues in technical diligence can be prevented. Since technical diligence is part of the investigation process to receiving venture capital, any business in theory could proactively prepare for technical diligence.
So advises my friend Ellie Cachette, General Partner at CCM Capital Management, a fund-of-funds specializing in venture capital investments. In her two-part series for Inc. Magazine, Ellie shares insights — real insights — in the following areas:
- Intellectual property and awareness
- Scaling
- Security
- Documentation
- Risk management
- Development budget
- Development meeting and reporting
- Development ROI
- Having the right development talent in place
Here are the links:
Five “Business Things” to Understand for Technical Diligence: Part One
Five “Tech Things” to Understand for Technical Diligence: Part Two
While we’re at it, here’s another great article by Ellie in Inc.:
When Your Customers Want One Thing — And Your Investors Want Another
Got a business? Want to do better? Learn from Ellie Cachette. Follow her @ecachette.
