Should Tech Due Diligence be data driven?

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Should Tech Due Diligence be data driven?
Should Tech Due Diligence be data driven?
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In today's digital era, data has become the lifeblood of businesses, driving innovation and fostering growth. One area where data is particularly critical is during Tech Due Diligence. The process of Tech Due Diligence evaluates the technical aspects of a company before a potential investment, merger, or acquisition. This process without data would be incomplete and inadequate, as it would not be able to provide a comprehensive understanding of the software and its underlying systems. This article will explore the importance of data in Tech Due Diligence and how it can greatly impact decision-making for investors and companies alike.

Assessing data quality and integrity

Tech Due Diligence relies heavily on the accuracy and reliability of the data being assessed. High-quality data allows investors to make informed decisions, while poor quality data can lead to erroneous conclusions and flawed investments. Data integrity refers to the consistency and accuracy of data over its entire lifecycle. It's crucial for investors to ensure that the data being used for Tech Due Diligence is both accurate and reliable.

Automated code scanning tools are instrumental in assessing data quality and integrity. They can quickly and efficiently identify potential issues within a software codebase, such as security vulnerabilities, technical debt, or compliance issues. By using these tools during Tech Due Diligence, investors can gain a deeper understanding of the software's quality, which in turn can impact the overall value of the technology being assessed.

Without data, investors would have to rely solely on subjective assessments and anecdotal evidence, which can lead to biased conclusions and flawed investments. Data-driven analysis, on the other hand, provides objective and quantifiable insights into the technology being evaluated, allowing for a more accurate and reliable evaluation of its potential risks and opportunities.

Uncovering hidden risks and opportunities

Data analysis during Tech Due Diligence can reveal hidden risks and opportunities that may not be apparent at first glance. For example, analyzing data on software usage patterns can help investors understand how well the software is meeting customer needs and identify areas for improvement. Data can also help uncover potential intellectual property issues, such as unlicensed software components or code borrowed from other sources.

Furthermore, data analysis can help identify the scalability and performance of the software. By evaluating system performance data and understanding how the software handles increasing demands, investors can determine if the technology is capable of supporting future growth.

Thus, data plays a vital role in the Tech Due Diligence process. By ensuring data quality and integrity, uncovering hidden risks and opportunities, and evaluating software performance, investors can make well-informed decisions about the technology they are considering for investment or acquisition. Automated code scanning tools, as a key differentiator, are essential in facilitating a thorough and accurate Tech Due Diligence process, helping to secure successful technology investments.

The incomplete picture without data in Tech Due Diligence

In summary, Tech Due Diligence cannot be complete without data, as it is the backbone of the process, providing crucial insights and evidence to support informed decision-making. Including data-driven analysis and leveraging automated code scanning tools are essential for a thorough and accurate assessment of the technology in question, ultimately leading to successful investments and acquisitions.

Vaultinum is a leading company in the field of Tech Due Diligence, offering a comprehensive solution that integrates code scans from five different scanners to provide a data-driven analysis of software and technology assets. By combining multiple code scanning tools, Vaultinum's solution ensures a thorough and extensive evaluation of the software, covering various aspects such as security vulnerabilities, compliance issues, code quality, and intellectual property concerns. This multi-faceted approach allows Vaultinum to offer a robust and reliable assessment of the technology being evaluated, providing investors with the critical data and insights they need to minimize risks and maximize the value of their technology investments.



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Philippe ThomasPhilippe is the CEO of Vaultinum. An expert in new technologies and high finance, and after 20 years in the international fintech industry, Philippe now heads Vaultinum.

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