total amount of funds raised by our clients
years - the longest partnership duration
Reduce risks for your deal and uncover value-creation potential of your product with our tech due diligence services.
Nearly 20% of startup founders and engineers have <1 year of experience managing cloud services. Our team can thoroughly examine the product's architecture & infrastructure to prevent you from buying a solution that requires constant maintenance and can’t scale.
There is always the rush to release fast for a startup. 45% of developers report “Lack of Time” as the main obstacle to reviewing code. Upsilon’s experts will do an in-depth code review and test coverage of the product, so you’ll see the complete picture of its quality.
According to Verizon’s report, 43% of cyber attacks are targeted at small businesses. Our specialists will provide an all-around security check to save you from risking your product’s success, brand reputation, and, worst of all - customers’ data.
At Upsilon, the due diligence methodology is based on reviewing and evaluating 5 key tech areas of the project. From our experience, these areas most fully cover the project's tech aspects and affect the amount of future effort and investments needed for its development and scaling. They are:
Each tech area is determined by several criteria it consists of. We assess those criteria in two aspects: the current level and the complexity of fixing. As a result, each criterion is assigned a certain value of the "Health" indicator.
Based on the "Health" of all criteria and tech areas, we derive an overall "Health Score" for the project.
We prepare the tech audit report, including all calculations, risks evaluation, assumptions, and recommendations.
We have 50+ full-stack and niche experts who are ready to
handle any part of your product development:
We love diving deep into the project’s specifics, generating ideas, and testing hypotheses. With Upsilon, your startup will get a reliable team who lives and breathes your product 24/7.
Keeping abreast of modern technologies and following the best development practices and standards, we build products that truly change the game.
We understand your time is limited and have teams ready for deployment within 1-2 weeks. Adhering to agile practices, we help clients deliver value to their customers faster and with fewer headaches.
With Upsilon, you can be 100% sure that your project will never be left halfway down the road. We always work at full capacity striving to help your product achieve all goals you have set.
Technical due diligence is a process that takes place during business mergers and acquisitions. It involves a comprehensive review, assessment, and verification of all technical details related to the acquisition target’s product, such as architecture, code quality, security, and licensing, so that informed decisions can be taken regarding investments.
For most business buyers, the primary goal of a tech audit is to identify risks and potential costs that could impact the business and consider them when it comes to price. But there is another advantage that sometimes remains pushed to the background. Assuming the deal is being completed with growth in mind, a comprehensive tech audit can provide a good idea about how quickly and smoothly growth can be achieved.
Here are key reasons to conduct technical due diligence before M&A or seed funding:
Businesses and startups can also benefit from technical due diligence. It's an invaluable tool for founders, ensuring the original concept stays on track while providing direction toward success.
Technical due diligence is an ever-evolving process whose structure may vary from case to case depending on many factors. Our experience ranges from clients that have already built a product relying on our expertise as a tech partner to third-party consultants hired for code review (identifying strong and weak points of a product). Regardless of the type of cooperation, we split the tech due diligence process into six main stages:
An initial step includes signing up a letter of intent (LOI) and non-disclosure agreement (NDA) to put confidence at the core of the process.
2. Kick-off call
At this stage, all parties better understand the product: its goals, market niche, and customer value proposition. At a high level, information about the technical side of the product is also provided. Then participants discuss all important aspects of the due diligence process, including timelines, the scope of work, documentation transferring, etc. After laying out these terms, the acquisition target’s team starts preparing documentation for review.
3. Documentation review
At this stage, our team thoroughly examines all the documentation provided. This process includes reviewing the existing architecture, code, integrations, and tech solutions and covers such areas of the project as hiring, onboarding, reliability, and security.
Once the documentation analysis is complete, our team starts reviewing the technical side of the product in action. This stage usually involves performance testing and conducting interviews with developers.
Our experts prepare a document with intermediate assessment results and a list of questions for the business acquirer and the product team. All parties discuss the paper, and feedback is collected and quickly analyzed. Additional review-test iterations are made if necessary.
The result of tech due diligence is the tech audit report based on document screening, testing, and meetings with stakeholders. The document includes all calculations, risks evaluation, assumptions, and recommendations regarding the quality of the reviewed product.
The tech due diligence report is a document providing investors with an in-depth analysis of the technical side of the product (or the startup as a whole) they will acquire to help them make the right decisions before moving forward with a deal.
A comprehensive due diligence report might include the following sections:
Costs for due diligence can range widely. Excluding the fees of both the buyer’s and seller’s teams, tech due diligence price might vary from $5,000 to $20,000 and even more depending on two factors: the complexity (and tech specificity) of the project and the number of review-test iterations needed to achieve the desired state of evaluated components. In short, conducting due diligence can be expensive and time-consuming, but potential risk avoidance outweighs it.