Tech Due Diligence

Technical Due Diligence

Technical due diligence asks whether the technology and team can support the business plan and what could change the investment decision. Our 40 review topics cover code, architecture, security, team and operations. Adapt them to the transaction; there is no universal Tech DD control set.

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Reference guides

Agree access, scope and delivery dates for the engagement

Planning the review

Quote against the transaction and review scope

Budget considerations

Review for the transaction or agreed portfolio milestone

Keeping it current

Tech DD is not a penetration test

Technology Due Diligence is an architectural and operational readiness review. It evaluates how technology is built, maintained, and scaled - not whether it can be broken into. Penetration tests check for exploitable vulnerabilities in running systems. Tech DD checks whether the engineering organization, codebase, infrastructure, and team can support the business through its next growth phase.

AuditFront groups its Tech DD checklist into 40 review topics across code quality, architecture, security, team and operations. Adapt that structure to the transaction. The report should explain material findings, evidence limits and proposed actions; the checklist does not determine the scope of every engagement.

From the Auditor's Bench

Technical due diligence is not standardized and so the practice varies between auditors. Over the years we've seen a variety of reports. Some looked like auto generated templates with super low information density focused only on a few technical aspects like code quality and development practices, and some, ours included, were wide and deep including both core technical elements as well as IP or team dynamics in a hand crafted report.
Since there's no standard (and for a good reason) this section and template inside the AuditFront app should be treated as a starting point for customization. Replicate your current flow, plug in other templates like ISO or NIS to add depth to your discovery process, make it yours.
For companies that are preparing to be the subject of tech due diligence I would highly advise to also go with the ISO or NIS template and collect documents needed throughout this process. You don't need to implement everything. Out of hundreds of targets I'm yet to see one with a perfect implementation, but try to collect as many existing documents as possible. Don't sugarcoat, don't backfill massive amounts of AI written documentation to cover empty space. Auditors usually have a great discovery and preparation process and they've seen enough to distinguish quickly put together slop from living documents. Transparency should be your most effective shield.

Who uses Tech DD assessments

PE analysts

Evaluating technology risk before acquisition or growth investment. Need structured, comparable findings across portfolio companies.

VC partners

Assessing technical maturity during Series A-C due diligence. Looking for scalability signals and technical debt indicators.

Startup founders

Preparing for funding rounds or M&A. Running a self-assessment before investors bring their own auditors reduces surprises.

CTOs

Building an objective view of engineering health for the board. Tracking technical debt reduction and operational maturity over time.

M&A advisors

Including technology assessment as part of transaction due diligence alongside financial and legal review.

Independent consultants

Delivering structured Tech DD reports to clients using a consistent, repeatable framework rather than ad-hoc checklists.

Where auditors look first

The highest-risk Tech Due Diligence controls - the ones auditors probe earliest and where gaps cost the most. Start your assessment here.

ARCH-1System Architecture and Design Patterns ARCH-6Multi-Tenancy and Data Isolation OPS-1Monitoring and Observability OPS-3Backup and Disaster Recovery SEC-1Authentication and Session Management SEC-2Data Encryption and Secrets Management SEC-3Vulnerability Management and Penetration Testing SEC-4Authorization and Access Control

Key Tech Due Diligence terms

Plain-language definitions for the concepts you will meet while working through Tech Due Diligence.

Audit Trail Compliance Automation Compliance Gap Analysis Cryptographic Controls External Audit Information Security Policy Privacy by Design Residual Risk Risk Appetite Risk Register Risk Treatment Segregation of Duties Supply Chain Risk Third-Party Assurance Vendor Risk Management

Control Categories

This library groups 40 review topics into 5 categories.

Code Quality & Engineering Practices

10 reference guides

Architecture & Scalability

9 reference guides

Security & Compliance Posture

8 reference guides

Team & Knowledge Management

6 reference guides

Operations & Infrastructure

7 reference guides

Who Needs Tech Due Diligence?

Startups preparing for Series A-C fundingCompanies undergoing M&A evaluationPrivate equity portfolio companiesScale-ups seeking strategic partnershipsCTOs benchmarking engineering maturityVenture capital and PE investors

Applicable Regions

Global

Related Frameworks

Organizations pursuing Tech Due Diligence often also work toward these standards.

ISO 27001 SOC 2

Start your Tech Due Diligence self-assessment

Work through the Tech Due Diligence assessment, record supporting evidence and review the gaps in your answers.

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