Tech StartupsDue DiligenceInvestment
A Technical Due Diligence Checklist for Investors
A great idea is not enough. For investors, the real risk lies in the technology itself. This checklist provides key questions to ask about code quality, scalability, and technical debt before investing in a tech startup.
Beyond the Pitch Deck: Assessing Technical Viability
When evaluating tech startups, investors often focus on market potential and team experience while overlooking the technical foundation. This checklist helps you uncover hidden technical risks that could jeopardize your investment.
Code Quality Assessment
- Review test coverage percentages
- Analyze code complexity metrics
- Check for consistent coding standards
- Evaluate documentation quality
Scalability and Performance
- Current system capacity and limitations
- Load testing results and performance benchmarks
- Database scaling strategy
- Infrastructure automation capabilities
Technical Debt Analysis
- Outstanding bug counts and severity
- Security vulnerability assessment
- Dependency management practices
- Team velocity and deployment frequency
Team and Process Evaluation
- Development team structure and expertise
- CI/CD pipeline maturity
- Incident response procedures
- Knowledge sharing and documentation practices
Remember: The technology should enable the business vision, not constrain it. A thorough technical due diligence process can reveal whether the startup's tech stack is an asset or a liability.
