Stage 3: The Product & Tech Deep Dive

The final stage of our diligence process is a comprehensive technical evaluation led by our Technical Partner. This stage focuses on understanding the current product state, technical architecture, and estimating the technical scope of work required for successful scaling.

Our Technical Philosophy

At Valven, we believe that strong technical foundations are essential for sustainable growth. This stage helps us understand not just what exists today, but what will be required to scale the product and technology to support exponential growth.

Technical Assessment Framework

Current Product State Analysis

Feature Completeness: Assessment of current product features and capabilities
User Experience: Evaluation of user interface design and overall user experience
Product-Market Fit: Technical validation of product-market fit indicators
Performance Metrics: Analysis of current performance and scalability metrics

Technical Architecture Review

System Architecture: Comprehensive review of current technical architecture
Code Quality: Assessment of code quality, documentation, and development practices
Security Assessment: Review of security measures and data protection protocols
Infrastructure Evaluation: Analysis of current infrastructure and hosting solutions

Technical Maturity Classification

This is a crucial evaluation that determines our approach and resource allocation:

Build: New MVP development

Starting from scratch or early prototype stage
Requires significant development resources
Higher risk but potentially higher reward
Extended timeline for initial product launch

Scale: Strengthen existing infrastructure

Solid foundation that needs optimization for growth
Focus on performance, reliability, and scalability
Moderate resource requirements
Shorter timeline to production readiness

Rebuild: Pay down massive technical debt

Existing product with significant technical issues
Major architectural problems that hinder growth
High risk and resource intensive
Significant timeline impact and potential project risk

A complete rebuild from scratch is a significant risk to our timeline and represents a major red flag.

Technical Deep Dive Areas

Architecture & Scalability

System Design: Evaluation of overall system design and architecture patterns
Database Design: Assessment of data modeling and database architecture
API Design: Review of API design, documentation, and integration capabilities
Microservices vs Monolith: Analysis of architectural approach and scaling implications

Performance & Reliability

Load Testing: Assessment of system performance under various load conditions
Monitoring & Alerting: Review of monitoring, logging, and alerting systems
Error Handling: Evaluation of error handling and recovery mechanisms
Uptime & Reliability: Analysis of system reliability and availability metrics

Security & Compliance

Security Architecture: Review of security measures and data protection protocols
Authentication & Authorization: Assessment of user authentication and access control
Data Privacy: Evaluation of data privacy practices and compliance requirements
Vulnerability Assessment: Identification of potential security vulnerabilities

Development Practices

Code Quality: Assessment of code quality, testing coverage, and documentation
Development Workflow: Review of development processes and deployment practices
Version Control: Evaluation of version control and collaboration practices
Testing Strategy: Assessment of testing approach and quality assurance processes

Technical Scope of Work Estimation

Development Resource Requirements

Team Size: Estimation of development team size required
Skill Requirements: Identification of specific technical skills needed
Timeline Estimation: Realistic timeline for technical milestones
Resource Allocation: Planning for efficient resource utilization

Infrastructure & Tooling

Infrastructure Needs: Assessment of infrastructure requirements for scaling
Development Tools: Evaluation of development tools and environments
Third-party Integrations: Analysis of required third-party services and APIs
Hosting & Deployment: Review of hosting and deployment strategies

Technical Roadmap

Phase 1 Priorities: Identification of immediate technical priorities
Scaling Milestones: Definition of key technical milestones for scaling
Long-term Architecture: Vision for long-term technical architecture
Risk Mitigation: Strategies for mitigating technical risks

Integration Assessment

Technology Stack Evaluation

Framework Choice: Assessment of chosen frameworks and technologies
Technology Debt: Identification of potential technology debt and obsolescence risks
Integration Complexity: Evaluation of integration complexity with existing systems
Migration Requirements: Assessment of any required technology migrations

Team Integration

Current Team Capability: Evaluation of existing development team capabilities
Knowledge Transfer: Planning for knowledge transfer and team integration
Mentorship Needs: Assessment of mentorship and guidance requirements
Team Scaling: Planning for technical team scaling and hiring

Success Criteria

To proceed to partnership, the technical assessment must demonstrate:

Solid Technical Foundation: Either a strong existing product or clear path to build one
Scalable Architecture: Architecture that can support anticipated growth
Manageable Scope: Technical scope that aligns with our resource capabilities
Reasonable Timeline: Realistic timeline for technical milestones
Team Capability: Existing or planned technical team capable of execution

Red Flags

Critical technical concerns that may disqualify an opportunity:

Rebuild Requirement: Need for complete technical rebuild from scratch
Unmanageable Technical Debt: Overwhelming technical debt that impedes progress
Poor Architecture: Fundamental architectural problems that can’t be easily fixed
Security Vulnerabilities: Critical security issues that pose significant risks
Unrealistic Timeline: Technical scope that doesn’t align with business timelines

Technical Partnership Model

Our Technical Support

Strategic Technical Leadership: Acting as interim CTO or technical advisor
Architecture Guidance: Providing architectural guidance and best practices
Code Review: Regular code review and quality assurance
Team Mentorship: Mentoring existing team members and new hires

Resource Commitment

Technical Expertise: Access to our technical team and expertise
Development Resources: Potential development resources for critical projects
Infrastructure Support: Guidance on infrastructure and scaling decisions
Quality Assurance: Support for testing and quality assurance processes

Next Steps

Founders who successfully complete all three stages of our diligence process advance to The Valven Scorecard, where we evaluate the opportunity against our investment criteria and determine the appropriate engagement playbook.

This is part 3 of our 3-part Diligence Process series. Read about The Founder & Vision Interview and The Business & GTM Deep Dive to understand the complete journey.