When tech investors Neqst were looking to become partners of yet another company, they asked System Verification to perform a technical due diligence.
Per Lindtorp works as a Partner at Neqst. He explains:
”When investing in a company where software plays a fundamental role, we want to make sure that the software is in good shape. And therefore, we perform a technical due diligence*. This gives us an idea about dependencies, potential security issues, licensing, technical debt and the general quality of the software. It is a like buying a house: you get it surveyed before signing the papers.”
In other words: a technical due diligence is an audit of a company’s codebase and software status. In short, it lets investors avoid unwelcome surprises. But how is System Verification’s software due diligence service different? First of all, the approach is broad. Focus is not just the current code status. Code changes over time, development work trends and key personnel are also reviewed and analysed.
One of the key aspects of the software due diligence procedure is that it is unbiased – it is an objective assessment that benefits both the seller and the buyer.
Furthermore, System Verification’s software due diligence service combines human expertise with AI technology. What does this mean for the customer?
“The fact that it is semi-automated makes it both cost- and time-efficient – it is a quick process,” says Per Lindtorp.
David Svensson, Sales Manager at System Verification, elaborates:
“One part of our service is software-based. The other part is about guidance from our experts. The result of our work is a report, and we always round off the project with a meeting – we sit down together with the client, discuss our findings and answer any questions they may have. In this case, we had a joint meeting with both Neqst and the company that was subject to the software due diligence.
Per Lindtorp is pleased with the outcome.
“We got exactly what we wanted, so we’re very happy. And so is the company we’re looking to invest in. They were very welcoming and transparent, and I think the process showed them that our interest in them is genuine. We got answers to our questions and a confirmation of the quality of their software. System Verification’s report pointed to a couple of miniscule issues, and they were promptly addressed.”
It sounds like Neqst will be a returning customer … ?
“We will definitely use System Verification’s technical due diligence service again. It provided the insights we needed in an extremely smooth and efficient way,” concludes Per Lindtorp.
* The Technical Due Diligence service was previously called ‘Software Due Diligence’.