In general, many startup software development companies aspire to attain two things. First, achieve a crucial investment to meet its target growth. Second, as the company grows, it will soon be acquired by one of the global giants. However, the path toward the finish line is a long journey full of obstacles and challenges. One of them is securing technical due diligence to succeed as a company. This article serves as a guide with the best recommendations to make the company succeed with a dedicated team to achieve the software project’s endeavors.
The need for technical due diligence
Several reasons due diligence is adopted may vary. They can be requested by venture capital company, software development firm, investment bank, acquiring firm or an original equipment manufacturer. The main intention for technical due diligence is getting into the nitty-gritty of the business deal. If you are hiring a development team, this applies to know who you are dealing with? Is your potential dedicated team can do the job that you require them? Are the team members of your hired software development company have the necessary skills to deliver all their promises? By taking extra effort to conduct technical due diligence, you have time, resources and money in identifying the dedicated team to work on your software project or application.
Letting your stakeholders informed
In whatever deal, by undertaking technical due diligence, you want to ensure all your investors, consumers or potential partners know what technology you are incorporating in your service or product. It is like testing the waters so you can be sure whether your investment is worth it and how much is necessary before pursuing the project.
All interested parties can provide an evaluation of the technology and product development that will be used by the team before seeking funding or selling it to ensure their investment remains intact.
Factors to consider in technical due diligence
Below are the top five recommended factors to keep in mind that you can provide interested parties during the technical due diligence process.
1. Architecture and infrastructure
In any software development project, always provide the software comprehensive details, technology, and full documentation, along with architectural flowcharts, scalability, and performance indicators. Also, provide a comparative analysis of how your technology and software product compete with those existing products in the market. Regarding infrastructure, provide the underlying technology options such as app servers, programming languages, databases, and other tools and technologies that are part of your software offering.
What you need to remember
Ensure that all your documents are properly archived. These include your created product designs, architectural descriptions, and API documentation over the years, including PoC results and operational metrics.
Also, you to document the description of the development processes, deployment environments, and the tools employed. Aside from configuration management and build tools, an interested party wants to know about the open-source components, including third-party tools, deployment, and patch devices. As deemed relevant, you should be able to highlight interoperability with the basic standards and integration with the other ecosystem’s products.
If needed, provide the previous technology used, historical issues encountered, some failed attempts to resolve them, and modified solutions conducted to address the issues with your current technology.
When dealing with large companies, scalability is a major concern, especially in evaluating startup firms that will deploy their solutions with complex systems. Ensure to compile all the details of all empirical tests your team has conducted.
A copy of all source codes may be requested. In most cases, this should be easy to provide. Since security is a number priority of many software development companies, it is required to present a documentation of security vulnerability scans and penetration tests that your dedicated teams have carried out. Currently, many automated tools can collect this data for you and instantly provide necessary reports.