Due Diligence (Technical)

Definition

The engineering audit where technical experts examine your code, architecture, and tech debt to see if you're about to implode.

Example Usage

The VC's technical due diligence team flagged our monolithic architecture as a scalability risk.

Origin

Legal term applied to technical domain

Fun Fact

Technical due diligence can reveal thousands of dollars in hidden technical debt

Source: Contemporary venture capital terminology

Related Terms

Beginner

up round

A financing round at a higher valuation than previous rounds, signaling growth and traction to the market. The opposite of a down round and considerably better for everyone's mood, if not always their long-term prospects.

🚀 Startup / VC

Intermediate

vesting cliff

The sadistic waiting period before any of your stock options actually belong to you, typically one year. It's designed to prevent you from taking the job and immediately quitting, essentially holding your compensation hostage for good behavior.

🚀 Startup / VC

Intermediate

Ramen Profitability

When a startup's revenue covers basic operating expenses (ramen-level salaries), allowing it to survive without external funding.

🚀 Startup / VC

Advanced

anti-dilution protection

A clause protecting investors from getting screwed when a company raises money at a lower valuation, automatically giving them more shares to maintain their investment value. Founders hate it; investors demand it.

🚀 Startup / VC

Intermediate

Vaporware

A product that has been announced and marketed but doesn't actually exist yet, which in Silicon Valley is just called a pre-launch strategy. It's the tech equivalent of selling tickets to a concert before you've learned to play an instrument.

🚀 Startup / VC

Beginner

Unicorn

A startup valued at over one billion dollars, named after a mythical creature because the valuation is equally imaginary. For every unicorn, there are ten thousand startups that are just regular horses with traffic cones taped to their heads.

🚀 Startup / VC

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