Key Takeaways on the SaaSpocalypse The “SaaSpocalypse” refers to the growing pressure on SaaS valuations driven by the rise of generative AI and autonomous AI agents. The software most at risk is often platforms that are undifferentiated, easily...
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All our articles on Tech Due Diligence
This section of Vaultinum’s blog is designed to help you understand the key issues surrounding Tech Due Diligence. It offers in-depth insights into the assessment of technology assets, the management of technical debt, cybersecurity, intellectual property, AI and scalability, providing guidance to support your investment strategies and decision-making.
From Generative AI to Agentic AI: new challenges for investors
Key Points: Agentic AI executes workflows with limited human intervention. Autonomous systems increase operational complexity and governance risk. AI...
AI and investment: why due diligence needs to evolve by 2026
Key takeaways Investment decisions are becoming more complex due to the uncertainty surrounding AI and the markets. Risk no longer depends only on current performance, but on exposure to transformation. Execution capability is becoming a key factor...
Before uploading source code: key security questions in a tech due diligence
Key points to remember about Source Code upload in Tech Due Diligence: Access to the source code allows to identify dependencies, detect vulnerabilities, assess licensing exposure and evaluate maintainability, increasing the accuracy of the...
Tech due diligence: 5 mistakes that could impact your valuation
Key points to remember Poorly prepared tech due diligence can slow down the acquisition and directly impact the value of the technology asset Investors assess not only the technology itself but also the team’s ability to master it and present...
What is Continuous Diligence and why does it protect asset value?
Key points to remember about Continuous Diligence Continuous Diligence is an ongoing technology analysis service that allows investors to monitor an asset between the acquisition Technical Due Diligence and the Vendor Due Diligence at exit. It...
What is a MOAT? Understanding its application in the tech industry
Key points to remember about technological MOAT: MOAT refers to a structural barrier that protects a company's profitability. The concept was popularised by Warren Buffett and formalised by Morningstar. A wide MOAT allows high margins to be...
Investor guide: Red Flag Report vs. Tech Due Diligence
Key takeaways A Red Flag Report is a rapid executive-level summary designed to identify the most critical technical risks that could impact the value or viability of an acquisition. Red Flag Reports typically focus on key risk areas including...
A case of AI washing: lessons from the Builder.ai collapse
Key takeaways about the Builder.ai collapse and AI washing The collapse of Builder.ai exposed the hidden risks behind overhyped artificial intelligence claims and laid bare a broader phenomenon: AI washing. Builder.ai claimed to automate software...
Must AI systems comply with the GDPR?
Key takeaways AI systems processing personal data must comply simultaneously with both the EU AI Act and the GDPR, as the two regulations are complementary. Organisations deploying AI systems should establish dedicated governance structures to...
What is Portfolio Monitoring? A guide for Private Equity investors
Key takeaways about Portfolio Monitoring for Private Equity investors In tech investments, value creation during the holding period depends on the fund’s ability to accurately track the asset’s performance beyond financial health, including...
The Private Equity glossary for tech investors
Key takeaways Technology due diligence helps private equity investors evaluate software, infrastructure, cybersecurity and scalability risks that may not be visible through traditional financial analysis alone. Key private equity concepts such as...
Scoping Tech Due Diligence: adapting to deal structures and context
Key takeaways Technology Due Diligence must be tailored to the specific transaction structure, investment strategy and risk profile rather than applied as a standardized process. The scope of Tech Due Diligence typically evaluates software...
ISO 27001 qualification: a guarantee for digital asset security
Key takeaways ISO 27001 is an internationally recognised framework for information security management that helps organisations identify, assess and mitigate risks related to digital assets and information systems. The ISO 27001 approach combines...
Understanding DORA regulation: what are the implications for investors?
Key takeaways DORA introduces mandatory digital resilience requirements for EU financial institutions and ICT providers from January 2025. The regulation focuses on ICT risk management, incident response, resilience testing and third-party...
Understanding Cloud Costs in Technical Due Diligence
Why Cloud Costs matter in Tech Due Diligence Cloud expenses refer to the costs associated with using cloud-based services, including compute power, storage, networking, and additional features like managed databases or serverless functions. These...
Ten questions to ask during Tech Due Diligence
Key takeaways Technical due diligence relies on targeted questions to uncover insights into software architecture, processes, risks, and team maturity. Questions on architecture, scalability, and maintainability reveal how technical trade-offs are...
Enhancing Tech Due Diligence with Network Footprinting
What is Network Footprinting? Network footprinting is a reconnaissance process used in cybersecurity to gather information about a computer network. This information-gathering phase is typically the first step in assessing a network’s...
Value creation through technology: strategies for Private Equity firms
Key takeaways Technology is a critical driver of value creation in private equity, enhancing revenue growth, reducing costs, and optimizing capital efficiency. Value creation begins with thorough tech due diligence to assess software quality,...
AI investments: disruption in the software industry
Key takeaways Generative AI is reshaping the software industry by transforming market dynamics, accelerating innovation, and redefining business models. AI can increase software development productivity by up to 50%, enhancing coding efficiency,...
Addressing technical debt: a Priority for maximizing the ROI of technology assets
Key takeaways Technical debt refers to the future costs generated by opting for quick, short-term solutions rather than more sustainable approaches. Unmanaged technical debt increases costs, slows down IT development, limits scalability and can...
AI Audits by Vaultinum
Key takeaways AI due diligence helps investors evaluate genuine AI capabilities and detect AI washing risks. AI maturity audits assess AI complexity, scalability, investment levels and technical credibility. AI audits combine questionnaires,...
Enhancing M&A success with Vendor Due Diligence Tech
Key takeaways Vendor Due Diligence Tech (VDD) provides a seller-led assessment of technology assets, software quality, cybersecurity, intellectual property, and compliance before a sale process begins. Conducting VDD proactively helps identify and...
SaaS Migration: A Comprehensive Guide for Software Businesses and Investors
The SaaS PhenomenonKey Drivers of SaaS PopularityThe SaaS model has seen exponential growth due to its numerous advantages over on-premise software deployments. For example, 47% of venture capital funding in 2023 went to companies with a SaaS...
Companies Re-Assess their Environmental Stance as New Stringent Regulations Loom
Key takeaways A landmark European Court of Human Rights ruling established that failure to meet climate commitments can violate human rights, setting a precedent for governments and companies. The decision is expected to trigger stricter...
Software failure: UK Post Office’s Misplaced Technology Trust
Key takeaways The UK Post Office scandal exposed the human cost of blind trust in flawed software systems. The Horizon system generated false accounting shortfalls that led to hundreds of wrongful prosecutions. Courts later confirmed that Horizon...
AI Washing: How to assess the real value of AI
The AI Bandwagon: More than just a buzzword The real game-changer in recent years has been the rise of generative AI. This type of AI goes beyond the predefined functionalities of earlier applications, venturing into the realm of creating new...
What is code quality and why is it important?
Key takeaways about code quality and why it matters Code quality refers to software that is maintainable, efficient, reliable, and secure, and for companies and investors, it represents a strategic asset that underpins operational efficiency,...
2024 Tech Trends: AI, Cybersecurity, SaaS and Green Tech
Key takeaways AI is rapidly transforming business operations while raising major IP, liability and regulatory challenges. Generative AI increases legal uncertainty around ownership of AI-generated content and intellectual property rights....
The rising tide of data breaches in 2023
Key takeaways Data breaches intensified in 2023, with rising frequency, complexity, and an average cost reaching $4.24 million and 287 days to contain incidents. Most breaches were caused by malicious attacks, notably phishing and compromised...
Cybersecurity Checklist and Cyber Health Check
Key takeaways Cybersecurity audits help businesses identify vulnerabilities, assess risks, and strengthen protection against increasingly costly and sophisticated cyber threats. Effective user access control requires role-based permissions, unique...
Include a source code scan to your escrow for more Security
Key takeaways Software escrow agreements ensure business continuity by releasing source code under predefined conditions if the vendor fails, but do not inherently guarantee code security. Integrating a source code scan into escrow enhances...
Managing open source software integration in software development
Key takeaways Open source software is widely adopted, with 97% of applications and 90% of companies using it, offering benefits such as cost savings, flexibility, and continuous improvement. OSS integration introduces challenges including security...
Tech Due Diligence, integral to a Business Continuity Plan
What is Tech Due Diligence and why is it important? Tech Due Diligence refers to the process of assessing and analysing a company's technological assets, including software, hardware, digital infrastructure, cybersecurity measures, and intellectual...
Why A Software Bill of Materials (SBOM) Is So Important
Understanding the SBOMAt the heart of any piece of technology lies its source code, a complex map that determines the functionality, scalability, and overall operation of a product. Deep within this map, we find the Software Bill of Materials...
Most Common Tech Mistakes Detected by our Software Scan
Neglecting Proactive Cybersecurity MeasuresIn an era of escalating cyber threats, the importance of proactive cybersecurity cannot be overemphasized. So, it is surprising that our software scan often highlights that many companies adopt a reactive...
Review: What Can We Learn From the Cyberattacks in 2022?
Key takeaways Cyberattacks increased sharply in 2022, affecting public institutions, large corporations and small businesses. Weak cybersecurity measures exposed many organisations to severe financial and operational damage. Proactive cybersecurity...
Cybersecurity Best Practices
Key takeaways Cybersecurity threats such as supply chain attacks, open-source vulnerabilities and remote code execution flaws can expose organisations to severe operational, financial and reputational risks. The SolarWinds Orion breach demonstrated...
Technology as a Service, applied to Tech Due Diligence
Key takeaways Traditional Tech Due Diligence relies on manual audits by consultants, which are time-consuming, costly, and may miss critical issues in complex systems. ‘Technology as a Service’ introduces automated, technology-driven due diligence...
Technology Due Diligence in mergers and acquisitions (M&A) – Guide
Key takeaways Technology due diligence in M&A is an in-depth evaluation of the target company’s technology stack, operational infrastructure, and ability to scale. This process scrutinises the scalability, maintainability, and integration...
Why and how to audit software before an acquisition
Key takeaways A software audit is a comprehensive assessment of software security, compliance, quality, and performance, helping organizations identify risks and improve reliability. Software audits help detect cybersecurity vulnerabilities, ensure...
Tech Due Diligence at Vaultinum: how we do it
Key takeaways Vaultinum’s Tech Due Diligence combines self-assessment questionnaires, proprietary source code scanning, expert interviews, and information system audits to deliver a comprehensive technology evaluation. Company-driven assessments...
Tech Due Diligence best practices: what to embrace and avoid
Key takeaways about Tech Due Diligence do’s and don’ts Tech Due Diligence is a critical step in the acquisition process to evaluate the target company’s technology assets and make informed decisions. A thorough Tech Due Diligence must include a...
Technical Due Diligence for startups and emerging companies
Key takeaways about Technical Due Diligence for startups and emerging companies Technical Due Diligence is a critical process for assessing the technological capabilities and potential risks of a company before making investment decisions, by...
Should Tech Due Diligence be data driven?
Key takeaways Data is essential to Tech Due Diligence, enabling a comprehensive and objective evaluation of a company’s software and underlying systems. High-quality and reliable data is critical, as poor data can lead to biased conclusions and...
Tech Due Diligence: base for a Strategic Due Diligence
Les points clés à retenir La Tech Due Diligence constitue un élément clé de la due diligence stratégique en permettant d’évaluer les capacités technologiques, les risques et les opportunités d’une entreprise cible. Une Tech Due Diligence...
Technology Due Diligence: Data Driven vs Human Approach
Key takeaways Data-driven Technology Due Diligence uses automated source code analysis to rapidly identify cybersecurity, intellectual property, compliance, scalability, and maintainability risks. Human-led Technology Due Diligence provides...
Technology Due Diligence and Business strategy alignment
Key takeaways Technology due diligence evaluates a company’s technology assets, infrastructure and capabilities to ensure they support business objectives and long-term competitiveness. Tech due diligence helps organisations identify technological...
Understanding Open-Source Software Risks
Key takeaways Open-source software can expose organisations to security vulnerabilities and unpatched flaws. Abandoned projects and insider threats increase cybersecurity risks in open-source ecosystems. Open-source licenses create legal and...
How to avoid the risks of open source licences?
Key takeaways Open source software provides access to source code but its use is governed by specific licence terms that can create legal, operational and commercial obligations. The main open source licence categories are public domain, permissive...
How to prepare for an IT Due Diligence: a comprehensive guide
Key takeaways IT Due Diligence assesses a target company’s technological assets and capabilities to identify risks and opportunities in mergers or acquisitions. A thorough evaluation and documentation of IT infrastructure, including systems,...
How to Choose the Right Technology Due Diligence Provider?
Key takeaways Choosing a technology due diligence provider with expertise in source code scanning is essential for identifying risks related to security, scalability, maintainability, and intellectual property. A strong provider should combine...
All you need to know about Software IP Audits
Key takeaways A software IP audit evaluates software assets to identify intellectual property risks, ensure ownership rights are protected, and verify compliance with licensing obligations. Reviewing source code, third-party libraries, and...
The Top 4 Tech Risks Revealed by a Technology Due Diligence
Key takeaways about the Top 4 Tech Risks Revealed by a Technology Due Diligence: Technology Due Diligence involves a thorough evaluation of a company's computer systems, including its hardware, software, and online presence, to identify potential...
The ultimate guide to Tech Due Diligence
Key takeaways about Tech Due Diligence Tech Due Diligence (Technology Due Diligence) is the process of evaluating a company’s technology assets and intellectual property to identify potential risks or issues, especially in the tech industry where...
How to perform a Tech Due Diligence on a software company
Key takeaways about how to perform a Tech Due Diligence on a software company A Tech Due Diligence is crucial for tech investors and M&A lawyers, and involves a comprehensive review of a software company’s technology stack, including software...
Reduce your investment risk: Open Source vulnerability scan
Key takeaways Investors often overlook software risks during due diligence, despite software being a primary asset in tech investments, leading to incomplete risk assessments. Open source software is widely used and beneficial for development...
Theranos: why a Technical Due Diligence is important
Key takeaways The Theranos case illustrates how insufficient technical due diligence can expose investors to major financial, operational and reputational risks. Theranos raised nearly $945 million despite lacking reliable and validated...
Responding to the Rise in M&A Activities
Key takeaways The increase in M&A activity makes technology due diligence increasingly important for assessing software assets, cybersecurity risks, and potential liabilities before an acquisition. Traditional due diligence often overlooks...
3 Key Trends Driving M&A in 2022
Key takeaways Digital transformation is a primary driver of Technology M&A, as companies acquire new technological capabilities to remain competitive and adapt to changing market demands. Increased competition among corporates, private equity...
Tech Due Diligence Checklist: questions to prepare for Technical Due Diligence
Key takeaways Tech due diligence is a comprehensive evaluation of a company’s technology assets, processes, and capabilities, typically conducted during mergers and acquisitions (M&A), investments, or partnerships. The goal is to assess the...
Top 3 risks to be aware of in High Tech M&A deals
1. Cyber RisksM&A transactions are fertile ground for cyber criminals providing them with both short and long term opportunities. In the short term, with business operations in transition, data is more vulnerable and at higher risk of...
Global trends in cyber risk
Key takeaways Cybercrime costs are rapidly increasing, projected to reach $9.5 trillion in 2024 and $10.5 trillion by 2025, reflecting the growing scale and profitability of cyber threats. Ransomware attacks are expanding in frequency and impact,...
Why is Due Diligence important?
Key takeaways Due diligence is a verification process used to validate information, assess risks and ensure informed decision-making across business, financial and operational activities. Due diligence is applied in multiple contexts including...
Due Diligence in merger and acquisitions (M&A)
Key takeaways Acquisition due diligence is a structured, multi-disciplinary process used to assess the risks and opportunities of a business before an M&A transaction. It includes financial, legal, administrative, human resources,...
Due Diligence: the precautionary principle in business
Key takeaways Due diligence is a risk assessment process used before acquisitions or mergers to evaluate a target company’s financial, legal, administrative and operational situation. Due diligence follows a precautionary principle aimed at...