Mitigating the Technology Risk of New Ventures
Tech Venture Capital firms are tasked with sourcing the best companies with the most competitive technologies; however, they face the challenge of confirming the viability of their technology investment. VCs need to focus on verification of the target company’s proprietary platform as well as its infrastructure to ensure success. A good overview for understanding the technical due diligence needs is covering both Software / Hardware appraisal of all proprietary technologies is provided: Software code and language review including Web 2.0 platforms Scalability & compatibility assessment Competitive landscaping in direct sector Identification of risks and potential costs within target firm to reduce post-closing surprise expenses Existing technology infrastructure and operations evaluation to determine “IT health” of business-technology alignment Overall, it is critical to remember that the underlying infrastructure a firm uses to implement its key strategy will define how successful