← Back to blog

How to Prepare Your Startup’s Technology for Series A Due Diligence

Series A investors will conduct technical due diligence. Here's what they look for and how to prepare 6-12 months before the raise — not 6 weeks before.

We have helped dozens of Australian startups through Series A technical due diligence — both as the fractional CTO preparing the company and as the technical advisor to the investor conducting the DD.

What Series A Investors Are Actually Asking

The technical questions are proxies for commercial questions: Is this technology capable of achieving the 3x revenue growth this investment is predicated on? What will we need to spend to achieve it? Are there any technical liabilities we’re inheriting? Is the team capable of executing the roadmap? Every technical finding is evaluated through a commercial lens.

The 12-Month Preparation Timeline

Months 1-3: architectural review and technical debt register. Months 4-6: top 3 security findings from a pen test addressed; all IP correctly assigned to the company; key processes documented. Months 7-9: single points of failure reduced — technical and human; comprehensive monitoring implemented. Months 10-12: technical investor narrative created; engineering team briefed on DD expectations; mock technical due diligence conducted.

The Documentation Checklist

Series A technical DD typically requires: system architecture diagrams, technology stack documentation, most recent penetration test report, IP ownership confirmation (contractor and employment agreements with IP assignment), development process documentation, infrastructure cost breakdown with growth projections, and engineering org chart with tenure and responsibilities. Having these ready before DD is requested signals operational maturity.

Security: Where Surprises Happen

Cybersecurity is where the most DD surprises occur. Common findings that concern Series A investors: no formal penetration testing programme, shared production access without audit logging, inadequate customer data access controls, and no data breach response plan. All are fixable — but they need to be fixed before DD, not disclosed during it.

The Narrative That Wins

The startups that perform best in technical DD can articulate clearly: here is what our technology does today, here is what it will need to do at 3x scale, here are the three investments Series A capital will fund to get there, here is why our engineering team can execute them. This narrative should be led by your CTO — fractional or full-time — not improvised by the founding team.


Ready for senior technology leadership? View our plans from $1,000/month AUD, or book a free 45-minute discovery call.

KA
in Connect on LinkedIn
The CTO Brief

Get the next one in your inbox

One sharp idea on technology leadership, every fortnight. No spam.

Keep reading
Startup & Scale-Up

Pre-Acquisition Tech Readiness: Getting Your SaaS Investment-Ready in 90 Days

2 min read
Startup & Scale-Up

When Should a Startup Hire a CTO? The Honest Answer for Australian Founders

2 min read
Free 45-minute discovery call

Want this thinking applied to your business?

Book a free call with Ken and get a senior, honest read on your technology.

Sister brand: CISO Advisory Australia — independent cyber security & Virtual CISO services