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The headline for this post is far too broad. More accurate would be to say that "very early stage startup technical diligence is usually a waste of time". Tha
by erdevs 10y ago
The headline for this post is far too broad. More accurate would be to say that "very early stage startup technical diligence is usually a waste of time". That is often the case, for many of the reasons the author outlined.
Later on in a company's life, however, technical diligence becomes very important. If anything, VCs should do a better job of it. Countless companies have struggled, stalled or failed because they didn't become aware of or address technical issues early enough and scaled the business side too far out in front of what could be managed technically. This gets your company upside down fast, and in very difficult to unwind ways. Customers become dissatisfied at instability and lack of rapid improvements. Internally, strife between revenue owners and technical owners can easily increase as tech tries to balance delivering new funcitonality and addressing old technical debt.
After you find product-market fit and start really scaling-- ie after the early stage-- technical diligence should be a much higher priority than it currently is, for both VCs/investors and for company operators within their own orgs. Better technical assessments of issues and opportunities would serve most startups very well.