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It seems Today, almost any company is a technology company. However, when it comes to evaluating investment opportunities, few venture and growth equity investors have the resources to engage in deep technical diligence.
They often give the consultant a more general overview of this critical work, because technical diligence is often blinded to investors. This should not be the case, because the strength or lack of production can bring or break the company.
Diligent focus is measured on the features of the product being measured. As a result, the emphasis is often on financial performance, digging detailed metrics such as overall margins, sales report productivity, LTV, CAC, return times and more. While the cost of sales and marketing for high-growth business is often the largest operating expense – sometimes representing more than 40% of revenue – R&D costs can be material, especially more than 20% of revenue.
However, the cost of production and R&D is higher than quality assessment based on discussions with management, industry analysts and experts, customers and partners. Investors are not alone in this regard. Even executives with no engineering background are required to rely on the CTO and the product team to understand the scope of the code, the technical debt, the cost and time spent on developing a roadmap, and so on. Performance.
Over time, technology should be less of a black box for investors.
Since we have no knowledge of the code or the evolution of the product, we are scratching our face, which makes us more vulnerable to technology repairs on the road.
The following seven tips will help you understand how to prioritize over time to get more transparency in the company’s technology and make the product more visible in the market.
Balancing technology architecture is crucial.
The initial decision on which technology architecture to use is widely expected, and not enough young companies are aware of long-term problems.
This code is the basis on which it is built, and it needs to align with the strategy of going from company to market. Failure to plan ahead will result in costly code rewriting and significant customer issues.
Discover the power of a great builder
I would prefer to have an A + developer out of 10B players. While this is true of many other roles, it is also true of engineering.
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