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Tech Diligence
Why?
It is easy to build an app
 It is not easy to scale that app to a million
   people
 Or update it as needs and priorities change
 Or build a team that can handle everything
What you want to know
   Capability
   Stability
   Expandability
   Security
   Cost to operate and support
   Support methods and stability
   Company dependency on partner technology
   Risks
   Planned initiatives
   IP & Defensibility
   Vendors/partners
Team assessment
   Management team capabilities & policies
   Staff capabilities
   Team structure
   Depth (& missing depth)
   Conspicuous lack of a certain discipline
   Individual flight risks
   Turnover
   Process
Risk
 Scalability
    Do you incur huge costs as you get more users?
    Will the system hold up?
    Does performance degrade?
 Supportability
    Can be a huge cost driver & impede scale
 IP
    If patents exist, are they defensible?
    Are there heavy patent players in this space? (Ex: mobile)
 Partnerships/service providers
    Outsourced development/development partners
    OSS vs. licensed
What is technically hard?
 Performance at a level for good user experience
     Rich media  images, video
     Big data
 Anything relying on data cleanliness and/or
  completeness
     Data is never clean or complete
   Machine learning
   Language processing
   Supporting lots of devices, cross-device sync
   Globalization/localization
   Marketplaces
Who?
 The best person to do diligence has been in a
  similar situation
   Deep familiarity with the specific technology (not
    just tech in general)
   Understanding of the tradeoffs & costs
Do your own diligence

  None of this is scary hard. You can
ask, and understand the answer to all
         of these questions
Good Tech Diligence Questions 
              Product
 Do you have a clear vision for where you want
  the product to be in one month, six months?
 How do you capture user feedback about the
  product? What is your process for product
  iteration?
 How many releases have you had in the last 6
  months?
 Do you have patentable IP? What is the
  timeframe for filing?
Good Tech Diligence Questions - Team
 Do you have people working for you now, who
  worked for you elsewhere in the past? (Hint:
  talk to these people)
 What does your interview and recruitment
  process look like for technical talent?
 What skills do you need in technical talent
  that may be difficult to find? (ex: special AI,
  networking expertise)
Good Tech Diligence Questions - Scale
 What would you have to change to accommodate
  10, 100, 1000 times more users?
 What would you have to change to accommodate
  a million users?
 What metrics do you use to determine if you are
  not scaled appropriately?
 Where are you hosted, and why?
 Do you use any third party services, what
  happens if they go down?
Good Tech Diligence Questions -
              Maintenance
   Do you build on check-in, daily, weekly, whenever?
   Do you create unit tests? Do you have code reviews?
   What development methodology do you use?
   Can you deploy a build to staging or production with
    one click?
   Do you have dedicated testers?
   When do you deploy?
   Does the software automatically notify you of errors?
   Do you have a bug tracking/triage system?
   How do you prioritize bugs vs. features?
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Tech diligence

  • 2. Why? It is easy to build an app It is not easy to scale that app to a million people Or update it as needs and priorities change Or build a team that can handle everything
  • 3. What you want to know Capability Stability Expandability Security Cost to operate and support Support methods and stability Company dependency on partner technology Risks Planned initiatives IP & Defensibility Vendors/partners
  • 4. Team assessment Management team capabilities & policies Staff capabilities Team structure Depth (& missing depth) Conspicuous lack of a certain discipline Individual flight risks Turnover Process
  • 5. Risk Scalability Do you incur huge costs as you get more users? Will the system hold up? Does performance degrade? Supportability Can be a huge cost driver & impede scale IP If patents exist, are they defensible? Are there heavy patent players in this space? (Ex: mobile) Partnerships/service providers Outsourced development/development partners OSS vs. licensed
  • 6. What is technically hard? Performance at a level for good user experience Rich media images, video Big data Anything relying on data cleanliness and/or completeness Data is never clean or complete Machine learning Language processing Supporting lots of devices, cross-device sync Globalization/localization Marketplaces
  • 7. Who? The best person to do diligence has been in a similar situation Deep familiarity with the specific technology (not just tech in general) Understanding of the tradeoffs & costs
  • 8. Do your own diligence None of this is scary hard. You can ask, and understand the answer to all of these questions
  • 9. Good Tech Diligence Questions Product Do you have a clear vision for where you want the product to be in one month, six months? How do you capture user feedback about the product? What is your process for product iteration? How many releases have you had in the last 6 months? Do you have patentable IP? What is the timeframe for filing?
  • 10. Good Tech Diligence Questions - Team Do you have people working for you now, who worked for you elsewhere in the past? (Hint: talk to these people) What does your interview and recruitment process look like for technical talent? What skills do you need in technical talent that may be difficult to find? (ex: special AI, networking expertise)
  • 11. Good Tech Diligence Questions - Scale What would you have to change to accommodate 10, 100, 1000 times more users? What would you have to change to accommodate a million users? What metrics do you use to determine if you are not scaled appropriately? Where are you hosted, and why? Do you use any third party services, what happens if they go down?
  • 12. Good Tech Diligence Questions - Maintenance Do you build on check-in, daily, weekly, whenever? Do you create unit tests? Do you have code reviews? What development methodology do you use? Can you deploy a build to staging or production with one click? Do you have dedicated testers? When do you deploy? Does the software automatically notify you of errors? Do you have a bug tracking/triage system? How do you prioritize bugs vs. features?