Technology Due Diligence Checklist: What Every Founder Should Know

Raising capital or preparing for a merger can be an exciting phase for any startup, but it also comes with intense scrutiny. Investors want to ensure that the technology powering your business is strong, scalable, and secure. This is where Technology Due Diligence (Tech DD) plays a vital role. For founders, understanding what goes into a comprehensive Tech DD can make the difference between closing a deal quickly and losing investor trust.

At Dextralabs, we’ve worked with startups and investors across industries to design a robust Tech Due Diligence framework. Here’s a practical checklist every founder should know before stepping into the funding or M&A process.

1. Technology Architecture & Scalability

Investors want assurance that your platform is not only functional today but also future-ready. A Tech DD review will assess:

• Core architecture design (modular, scalable, and adaptable)

• Cloud readiness and infrastructure efficiency

• Ability to handle user growth and traffic spikes

2. Code Quality & Documentation

Poorly written or undocumented code is a red flag. Founders should ensure:

• Code follows industry standards and best practices

• Proper version control and documentation exist

• Automated testing and CI/CD pipelines are in place

3. Team Capability & Processes

A strong tech team is as critical as the product itself. Tech DD typically evaluates:

• Experience and maturity of the engineering team

• Software development lifecycle (SDLC) processes

• Agile or DevOps practices for faster, reliable releases

4. Security & Compliance

In today’s environment, investors place high importance on security. Areas of focus include:

• Data protection and privacy compliance (e.g., GDPR, HIPAA)

• Vulnerability management and penetration testing

• Secure coding and authentication practices

5. Intellectual Property (IP) & Legal

Founders must ensure that they actually own their technology. This involves:

• Reviewing software licenses and third-party dependencies

• Ensuring no open-source compliance issues exist

• Clear IP ownership documentation for proprietary assets

6. Product Roadmap & Innovation

Finally, Tech DD isn’t just about risks—it’s also about opportunities. A strong roadmap shows investors that your product is evolving with market needs. Founders should present:

• A clear short-term and long-term product strategy

• Innovation pipelines and scalability plans

• Integration capabilities with new technologies

Why Dextralabs?

At Dextralabs, our Tech Due Diligence process uses the RCOI framework (Risk, Cost, Opportunity, Impact). This means we don’t just identify risks—we quantify their cost, highlight opportunities, and map out the impact on valuation. This structured approach equips founders with a clear narrative that builds investor confidence and accelerates funding discussions.

Conclusion

Technology Due Diligence is not just a box to check—it’s a roadmap to stronger funding opportunities and long-term success. By preparing with a solid checklist covering architecture, code, team, security, IP, and product strategy, founders can walk into investor meetings with confidence. Partnering with experts like Dextralabs ensures that your startup not only passes Tech DD but turns it into a competitive advantage.