Technical Due Diligence: A Finely Honed Tool for Evaluating Investment Decisions
For venture capitalists and M&A pros who need to make quick go/no-go investment decisions, we offer a streamlined variant of our Technical and Process Review. What makes it a finely honed tool for evaluating investment decisions?
- Extremely fast turnaround: just a few days
- Strong focus on investment risk
- Specific recommendations for post-close improvements, including a quantified assessment of the amount of money required to pay off the technical debt
- Validation of findings and recommendations through hard technical debt data
The overarching focus of Cutter's Technical Due Diligence is on what the technical findings mean to the business, as exemplified by this anonymized excerpt is from a recent Technical Due Diligence engagement that Cutter carried out; the VC firm decided "Go" and invested in the company:
The XYZ R&D team is a small but impressive team with clear vision and good quality software. The roadmap the team aspires to implement is aggressive and requires the organization to scale in a significant manner without losing velocity. The major investment risk from a technical due diligence perspective is possible slippage of schedule. This investment risk might be worrisome if the revenue plan critically depends on timely completion of all items on the roadmap. However, from a technical due diligence perspective, we find no reason not to invest if the revenue plan is not too sensitive to 'reasonable' delay in executing the roadmap.
For details on how Cutter can help with your due diligence, contact us at sales@cutter.com or +1 781 648 8700.