Leveraging Partnership and Innovation to Drive Smarter Investment Choices
The Traditional Consultancy
Investor, it was probably a few days or weeks ago when you sat in a technology diligence readout and thought, "I'm hearing good technical insight on how the target has automated deployment, what database(s) are they using, how microservices are communicating with each other and other technical capabilities they excel in. Still, one thing I do not understand - are they able to scale the business with the current tech? It's the most important thing! Why don’t the tech guys just spell that out? Why do I need to read between the lines and connect the dots?"
After the readout and an intense Q&A session, you feel somewhat relieved as the target's tech stack is suitable for your business case, and the few improvements needed to fulfill the investment thesis won't cost you an arm and a leg. You end the project with a mental note to yourself, "Dodged a bullet there! It's unacceptable that I can only get answers through Q&A and at the final hour. The next time I will use somebody who can bridge the gap between business and tech!"
Friendly CTO Kicking Tires
Another prospect and another project. You remember the lessons learned from your last project and decide to be more prepared and take fewer risks. This time you turn to the CTO of one of your portfolio companies, somebody you worked with before and who is an experienced executive and can translate tech to business. A sound move, but with limitations, as you are about to discover.
They hand over their findings. The first glimpse at the report, if you can call it that - a Word document with a few bullets that lack structure and context. You understand the compromise and think about whether the document's back-of-the-napkin style raises more questions than provides answers.
You share the findings with a tech-savvy colleague. The feedback is harsh as she describes the document as too high level and done by somebody not current with modern software engineering. You weren't expecting tech people to shoot so many holes in the analysis and realize quickly that one person’s experience is not enough to know the industry-specific aspects of modern product development, but you still think it is a step forward. At least the CTO understands that we invest in growth companies and highlights the scalability challenges in the report in a language understandable for business people. Moreover, working with somebody you know and trust is a big bonus.
You re-read the document to double-check everything. CTO's story sounds logical, and you are about to close the report, but then you see it. "The target requires significant technological investment to expand to new markets" stands in the last but one bullet - a major hit to the growth-focused business plan and investment thesis.
"Did I miss that on the first read because of poor formatting by the CTO?" was the first thought, and you quickly realize the issue is elsewhere.
"How to get these tech diligence answers earlier to reduce the feedback loop? How do I mitigate or pivot from the current situation to ensure the business case holds?" were the things in your mind before going heads-down to save the project by reworking the business plan in the final hour.
A Peek Into the Future Today
Now imagine doing tech due diligence in a new way. You onboard experts already in the screening phase - much earlier than going into due diligence. Understanding the target's technology platform limitations and capabilities early in the process gives you a competitive edge. The management meeting tech discussion can now focus on double-clicking on the most critical topics, and synergies between technology and business are accounted for when building the investment thesis.
Moving from the screening to the outside-in, then to the due diligence phase is seamless and natural. The data is constantly in front of you and you can rely on the same partners working with the same report and tools - constantly validating and adding details as the diligence processes granularity increases in the later stages.
The report is designed professionally, ensuring the data that matters is front and center, at your fingertips, and exportable. The report's look and feel are the same, regardless of your investment phase, making it more consumable.
But most of all, the report and its findings give the investor an overview of the tech part of business, answering the most important question - can I achieve the investment goal with this prospect? The reader will find out what investment and time it takes to reach their goals and what steps are needed to get there.
Bet you can relate to the first two scenarios. If not, then you have been lucky. At least I've seen numerous tech DD reports and heard feedback from clients matching the exaggerated stories above. This is why we at Intium are constantly improving our customer focus, automated data-driven approach, and product offerings to ensure our clients are armed with adequate information to make the best business decisions.
Our latest product, "Sonar Screen," brings you the future - an automated scan that creates the target's technology profile and guides you through the investment process.
Want to see the early bird demo? Contact us now at firstname.lastname@example.org. We are happy to take all the feedback as we are still developing and improving the offering.