Strategy & Portfolio
Technical Due Diligence
An assessment of a company's technology architecture, code quality, engineering team, and technical risks conducted as part of the investment process.
Technical due diligence (tech DD) evaluates the quality, scalability, and defensibility of a company's technology as part of the investment evaluation. This includes reviewing code architecture, assessing technical debt, evaluating engineering team capabilities, stress-testing infrastructure scalability, reviewing security practices, and assessing IP defensibility. Tech DD is typically conducted by the investing firm's technical partners or external consultants.
In Practice
The tech DD revealed three critical findings: the application was built on a monolithic architecture that would require 6-12 months of refactoring to scale beyond 100K users, the company had no automated testing (0% test coverage), and two of five engineers were responsible for 85% of the codebase — creating severe bus factor risk.
Why It Matters
Technical due diligence prevents investors from committing capital to companies with hidden technology risks. Code that can't scale, security vulnerabilities, and excessive technical debt can all destroy value post-investment.
VC Beast Take
Many VCs skip technical due diligence at early stages because the technology will likely change. This is a mistake. Tech DD at seed stage isn't about the code — it's about the engineering team's capability and judgment. A great team with bad code can fix it; a weak team with good code will eventually break it.
Related Concepts
Further Reading
How to Evaluate a Startup as an Angel Investor
A practical framework for assessing pre-seed and seed startups — covering team, market, traction, business model, and terms. Plus the red flags that experienced angels never ignore.
How VC Firms Are Structured: Roles, Teams, and Decision-Making
GP/LP structure, investment committees, partner dynamics, consensus vs conviction—a complete breakdown of how venture capital firms organize and make investment decisions.
What Is a Venture Partner and What Do They Actually Do?
Part-time vs full-time, sourcing vs investing, carry allocation—demystifying one of the most misunderstood roles in venture capital and how to become one.
What a Series A Process Actually Looks Like
The Series A is where fundraising gets real — partner meetings, deep diligence, and term sheet negotiations. Here's a realistic week-by-week breakdown of what to expect.
How to Negotiate Your Term Sheet: A Founder's Playbook
A tactical guide to negotiating your startup term sheet — which terms matter most, where to push back, and how to protect your interests without killing the deal.
How to Get a Job in Venture Capital: The Definitive Guide (2026)
The complete guide to venture capital careers: roles from analyst to partner, salary ranges at every level, interview prep, and proven strategies to break in — even without a finance background.
Related Guides
The Complete Guide to Startup Fundraising
A step-by-step guide to raising capital for your startup — from deciding when to raise, to closing your round and everything between. Written for founders, by people who've seen both sides.
How Venture Capital Works: The Complete Guide
Everything you need to understand about venture capital — how funds raise money, how deals get done, and how returns flow back to investors. The definitive primer.
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