Technical Due Diligence for SaaS Startups and VCs - madewithlove (2024)

Secure your next investment with confidence. Our tech due diligence services offer comprehensive insights into your technology's strengths and potential risks.

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Discover your SaaS startup's potential with expert technical due diligence

At madewithlove, we don't rely on magical formulas or famous influencers' opinions when we verify investment decisions and perform tech dd and audits. We also understand that securing investment and navigating mergers and acquisitions demand more than just innovative ideas and a compelling business model. It requires a foundation built on robust technology and a clear understanding of potential risks and opportunities. This is where our technical due diligence services come into play.

We specialize in providing in-depth technical analysis and due diligence reports that go beyond surface-level assessments. Our expertise spans comprehensive technical evaluations, from code quality and security to scalability and infrastructure, ensuring your technology can withstand the scrutiny of investors and the challenges of growth.

Read more about our audits

Technical Due Diligence for SaaS Startups and VCs - madewithlove (1)

Whether you're preparing for a seed round, eyeing a series A/B investment, or approaching a crucial merger or acquisition, our team is here to illuminate the path forward. By partnering with us, you'll gain clarity and confidence to secure your next investment but also the strategic insight to optimize your technology for long-term success.

We are not a typical audit company

We started doing due diligence because investors and VCs have asked us to do so. And after three years, we've done due diligence for over 130 startups throughout the world.

How we make investors' lives easier

If you'd like to know the technical state of a company you want to invest in, keep reading. If you're looking to exchange investment knowledge, well… keep reading!

Audits and due diligence

Do you need an objective third party to analyze a business and identify future concerns?

We audit startups and scale-ups using our 5-pillar methodology to produce a due diligence report where we assess 60+ items that help you transition to a quality-first mindset. If one breaks, that promising business you've invested in can soon follow.

Reduce investment risk with technical due diligence

Two types of due diligence

We offer technical due diligence for startups as part of internal concerns or investment via seed, series A/B, or merger & acquisition. There’s two types:

  • Shallow audits, which is up to 4 interviews

  • Deep audits, which is up to 8 interviews & in-depth code review

Events with industry leaders

Would you like to meet like-minded people to discuss common problems, shared pains, and the future of our industry?

Why not discuss these things during a free-to-attend and casual dinner with other industry leaders. Come with stories, but please leave the black tie and business cards at home.

Check out upcoming events

Accelerator program

We like to share what we've learned about startups and scale-ups in the last 13 years.

We can provide technical advice during open office hours, moderate discussions, host workshops, or help put out fires.

Find out how we teach

We've driven dozens of decisions with tech dd

VCs and startups we've helped with due diligence

They're all here

World-class CTOs, investors & engineers.

We've grown from two guys in Leuven to a team with 20+ members working remotely, located in 5 countries across the globe.

Technical Due Diligence for SaaS Startups and VCs - madewithlove (42)
DimitriPartner from Belgium
Technical Due Diligence for SaaS Startups and VCs - madewithlove (43)
MikeEngineering manager from Belgium
Technical Due Diligence for SaaS Startups and VCs - madewithlove (44)
See all our pretty faces
Need more than just logos?

Read some of our clients' success stories

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    Connecting customers with a series of partners to provide them with specialised expertise across parking, real estate and mobility

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    50 Partners

    50 Partners is a French accelerator providing IT startups with mentoring, financing, and office space in central Paris.

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    Combell

    It's impossible to be an expert on everything and, as technology gets more complex, the number of things your team has to juggle only increases. We recommend companies focus on the core of their business, but sometimes there are tangential domains which need attention. Does it make sense for your team to focus on these secondary problems?

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    3D Aim Trainer is a free aim training multiplatform for First and Third Person Shooter gamers.

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    Connecting customers with a series of partners to provide them with specialised expertise across parking, real estate and mobility

    Read this storyRead all stories

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    50 Partners

    50 Partners is a French accelerator providing IT startups with mentoring, financing, and office space in central Paris.

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On our blog

We often share interesting articles for founders and VCs

How to communicate a roadmap to VCs and investors

Audits and due diligence

Roadmap

Team and leadership

What do investors and VCs care about when they ask for your roadmap? How do you gain their trust while presenting them? How manage expectations?

5 things investors and VCs care about before investing

Audits and due diligence

Product bloat

Product documentation

In the eyes of a VC, your startup is more than just lines of code; it's a potential hidden gem waiting to be polished. So, the next time you pitch, think less about impressing with tech and more about presenting a balanced, promising business.

Decoding Startup Success: Insights from Lotte Geldermans (Pitchdrive) on technical due diligence and growth strategy

Podcast

Audits and due diligence

What early-stage startups should prioritize technically and how Pitchdrive helps SaaS startups navigate the complex waters of growth and investment.

A story on remote audits
How to do a software rewrite
Pulse: Episode 6 – Johann Romefort on Technical Due Diligence

Read 100+ more articles

What is technical due diligence?

Technical due diligence (Tech DD) is a critical examination and analysis of a company's technology stack, architecture, security measures, compliance, and code quality. This process is pivotal for SaaS businesses seeking investment, as it uncovers the technological strengths and vulnerabilities that could impact the company's value, scalability, and future growth. A thorough Tech DD assesses several key areas, including but not limited to:

Technology stack evaluation

Understanding the suitability and longevity of the chosen technologies.

Code quality and scalability

Analyzing the codebase for quality, maintainability, and scalability.

Security and compliance

Ensuring that the technology complies with relevant laws and standards and is secure against potential threats.

Architecture review

Evaluating the system architecture for efficiency, scalability, and ability to meet future business needs.

A comprehensive technical due diligence report provides an essential insight into the technological health of a SaaS company, facilitating informed decision-making during investments and mergers and acquisitions.

Technical Due Diligence for SaaS Startups and VCs - madewithlove (51)

Why technical due diligence matters

For SaaS founders, technical due dil is not just a checkbox in the investment process; it's a critical component that can significantly influence the outcome of funding rounds and strategic partnerships. Tech DD offers deep insights into the technological foundation of your company, highlighting strengths while identifying potential risks and areas for improvement. This process is invaluable for:

  • Risk MitigationEarly identification of technical issues allows for timely rectifications, reducing potential risks in investments.

  • Investor Confidence A solid tech DD report reassures investors of the technological soundness and scalability of your SaaS business, making it a more attractive investment opportunity.

  • Strategic Planning The findings from Tech DD can inform strategic decisions, guiding technology roadmap and resource allocation to align with business goals.

Our technical due diligence Services

At madewithlove, our technical due diligence services are meticulously designed to meet the unique needs of SaaS companies. Our approach goes beyond traditional assessments to provide a holistic view of your technology's current state and its potential for future growth. Our services include:

  • Comprehensive technology assessment We evaluate your technology stack, architecture, security posture, and compliance with industry standards, providing actionable insights for improvement.

  • Code Quality Review Our experts scrutinize your codebase for maintainability, scalability, and performance, ensuring your technology can support growth and adapt to future demands.

  • Detailed Reporting Our technical due diligence report delivers a clear, comprehensive overview of our findings, empowering you with the knowledge to make informed decisions and confidently engage with investors and partners. The report is based on 5 pillars: Team and leadership, proces, written communication, engineering, and problem and solution.

Technical Due Diligence for SaaS Startups and VCs - madewithlove (2024)

FAQs

What is technical due diligence for startups? ›

Technical due diligence is the process by which investors, be they venture capitalists, angel investors, or corporate partners, thoroughly assess a startup's technology, infrastructure, and overall technical capabilities.

What do VCs look for in due diligence? ›

A standard due diligence checklist will include financial, legal, tax, and asset-related data—but depending on the VC fund, deal type, and target company, you will likely add more categories to that list. For example, unlike PE firms, VCs often look more closely at the startup founder.

What are the 3 examples of due diligence? ›

Other examples of hard due diligence activities include: Reviewing and auditing financial statements. Scrutinizing projections for future performance. Analyzing the consumer market.

What are the 4 customer due diligence requirements? ›

Customer Due Diligence (CDD) involves four key requirements:
  • Identifying and verifying the customer's identity using reliable sources.
  • Understanding the nature of the customer's business relationship to determine expected transactions.
  • Ensuring ongoing monitoring of the customer's transactions for suspicious activities.

How do you perform due diligence on a startup? ›

Due Diligence Checklist for Startup Founders
  1. Financial Information and Business Plan. ...
  2. Intellectual Property Rights. ...
  3. Minutes and Business Documentation. ...
  4. Transparency Regarding Lawsuits. ...
  5. Team Interviews and Background Checks. ...
  6. Supply Chain Contracts and Customer Data. ...
  7. Revenue and Sales Numbers. ...
  8. Market Analysis.
Feb 24, 2023

How long does VC due diligence take? ›

The best companies that we work with tend to have ongoing conversations with potential venture capital investors well before they formally begin a fundraising process – and these companies typically can get through due diligence in two to four weeks.

How do VCs assess startups? ›

They show how well a startup is solving a problem, creating value, and capturing a share of the market. VCs look for startups that have consistent and high revenue growth rates, as well as positive unit economics (more on that later). Revenue, Revenue Growth Rate (yoy), gross margin %, and pipeline conversion.

How much does technical due diligence cost? ›

The cost of technical due diligence can vary depending on the complexity of the project, but it typically ranges from a few thousand to tens of thousands of dollars.

What should I prepare for due diligence? ›

Here are four steps to prepare you for the due diligence process:
  1. 1 Be honest. Get used to having honest conversations. ...
  2. 2 Record & store information from the start. ...
  3. 3 Ask questions. ...
  4. 4 Consider it as an opportunity to find the best match.

What does technical diligence for AI project include? ›

It involves defining precise metrics, evaluating the system's performance in real-world scenarios, and conducting error analysis to comprehend the types of misclassifications made by the system.

What is tech due diligence in M&A? ›

Technical due diligence can identify those gaps and ensure that the company isn't getting into more trouble than it anticipated with the new merger or acquisition when those networks eventually combine. A security threat poses a substantial problem for the newly acquired company.

What is technical due diligence for investment? ›

Technical Due Diligence (TDD) is a thorough examination of a company's technology and technical aspects before a significant event like an investment, merger/acquisition, or initial public offering (IPO).

What are the benefits of technical due diligence? ›

A thorough examination of a solution helps identify hidden liabilities, ensures compliance, and assesses scalability. The process of TDD (Technical Due Diligence) provides a comprehensive understanding of the target company's technology landscape, enabling informed decision-making.

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