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It's interesting to see different approaches for tech due diligence (tech DD) work well. Point Nine is considered to be a very strong European seed fund and the
by lpolovets 7y ago
It's interesting to see different approaches for tech due diligence (tech DD) work well. Point Nine is considered to be a very strong European seed fund and they've invested in a lot of great companies. I'm not sure what they do for tech DD (the first line in this article says this calculator is not part of their process), but based on the article I'd guess they do a significant amount of it.
My experience has been very different: I started out doing tech DD and quickly stopped because it didn't have much value for us. Here's a post about my experience: https://www.codingvc.com/why-startup-technical-diligence-is-a-waste-of-time/ https://www.codingvc.com/why-startup-technical-diligence-is-...
My conclusion over the last 6 years in venture has been that tech DD is important for companies with technical risk, but not many products have true technical risk. And regardless of the underlying tech, the CTO needs to be able to spot good talent, convince that talent to join, and manage a team for at least the first few years of a startup's life.