Notes for technology leaders of companies preparing for funding.
When venture capital funds and growth investors decide to open their purses, they do so with caution. When they open the hood today, they aren’t just looking for clean code—they want proof that your platform can scale securely, comply with strict regulations, and survive tomorrow’s cyber headline amongst a landscape of evolving threats.
Tight capital and new cybersecurity-disclosure rules have raised the bar; companies that can’t demonstrate operational maturity risk punitive deal terms or a hard “no.”
Start diligence long before the data room opens
Your data room is your vault of everything confidential that you’re willing to expose to Venture capital teams to help them assess you.
Technology Due Diligence forms an essential part of it, especially if you have a technology-centric core as part of your unique selling points (USPs).
It starts with a mindset shift:
Treat technology due diligence as continuous Quality Assurance:
Run internal “mini-audits” every sprint—don’t wait for the term sheet.
Link tech metrics to business KPIs:
Show how latency gains lowered churn or how FinOps shaved COGS.
Document decisions:
Architecture ADRs, threat-model diagrams, and IaC repositories become evidentiary proof, not slide décor.
Understand the key pillars investors scrutinise (and how to ace them)
- Architecture resilience & scalability – Map service boundaries, SLAs, and fail-over tests.
- Code health & technical debt – Static analysis plus peer review logs; have a debt retirement plan.
- Secure-by-design SDLC – Shift-left security gates, SAST/DAST coverage, and SBOM attestation.
- Regulatory & privacy posture – Based on your industry deep dive into regulatory body and compliances. Eg, SEC/HIPAA/SOC 2 readiness and data-retention policies keyed to SEC cyber-disclosure triggers.
- Performance & reliability – Baseline p95 latency under peak load; show incident MTTR trending down.
- Cloud economics (FinOps) – Unit-economics dashboard, rightsizing playbooks, and reserved-instance strategy.
- Observability & monitoring – Unified logs/traces/metrics with alert hygiene evidence.
- Accessibility & inclusivity – WCAG 2.2 audits baked into CI.
- Data governance & migration readiness – Proven cut-over plans, lineage diagrams, encryption at rest/in-flight.
- Team & process maturity – DORA metrics, onboarding velocity, and documented succession for key roles.
What are the technology areas that are the cherry on the cake (2025)
- AI & LLM governance – Provide guardrails around model drift, prompt injection, and licensing of training data.
- Supply-chain security – SBOMs plus continuous vuln feeds; investors now quote SolarWinds enforcement cases. Source: reuters.com
- Carbon-aware engineering – Investors in ESG-sensitive funds ask for Cloud CO₂ dashboards.
Craft a compelling narrative.
- Know your Technology “why.” Demonstrate how your company’s tech differentiators align with revenue, margin, or a regulatory moat. If your technology doesn't lead to business, investors see it as a fancy, disposable gadget.
- Bundle evidence into stories. Instead of dumping raw scan reports, curate a before-and-after tale of risk reduction. With VCs trained to make decisions and scan patterns, a before-and-after comparison captures their attention immediately.
- Quantify remediation. Assess and share the Level of Effort (LOE) estimates and timelines. At Infiligence, we have consistently observed that investors tend to dislike open-ended risk.
- Close with an action roadmap. Demonstrates self-awareness and continuous improvement culture.
Tech Due Diligence Checklist
(✓ = do internally | ★ = best handled by neutral third-party)
Key takeaway
Treat tech due diligence as an always-on discipline, not a scramble when term sheets arrive. Nail the fundamentals in-house, then invite neutral specialists to stress-test security, performance, and compliance.
Doing so turns diligence from a gating hurdle into a strategic asset that boosts valuation and investor confidence.
Please reach me at rams @ infiligence.com should you wish to get unbiased tech due diligence done to prepare your company for funding readiness. We will help you ensure your technology stack is scalable and robust, enabling it to handle the next wave of growth and win VC confidence.
