The 50-Point Technical Due Diligence Checklist for Startups (2026)

This is where most deals get delayed or derailed. Acquirers want to know: can this system grow with us?

1. Database schema supports 10x current load without major refactors
Can your DB handle 10x users/transactions? Document current vs. capacity limits.

2. No single points of failure in critical paths
What happens if your main API server dies? Redis goes down? Document failover for each critical component.

3. Async job queues are properly monitored and can scale
Are worker queues backed up? Do you have dead letter queues? Show queue depth metrics.

4. Multi-tenancy is architected correctly (if applicable)
Is customer data properly isolated? Can you onboard enterprise clients without code changes?

5. Clear service boundaries and separation of concerns
Can a new engineer understand the system in 2 weeks? Draw the service map.

6. API versioning strategy exists and is documented
How do you handle breaking changes? What's your deprecation policy?

7. Caching strategy is appropriate and cache invalidation is handled
Where do you cache? How do you invalidate? Document cache TTLs and patterns.

8. Database queries are optimized with proper indexing
Show slow query logs. Document indexes on high-traffic tables.

9. Load testing has been performed with documented results
When was your last load test? What traffic level did it hit? Share the report.

10. Horizontal scaling is possible without code changes
Can you add more servers/containers without touching code? Prove it.

Code quality signals engineering maturity. Messy code = risky integration.

11. Test coverage exceeds 60% on critical paths
What's your actual coverage? Which critical paths are untested?

12. No hardcoded credentials or secrets in codebase
Run a secrets scan. We use tools like gitleaks or trufflehog.

13. Consistent code style enforced via linters
ESLint, Prettier, or equivalent must be in CI. No exceptions.

14. Code review process is documented and followed
Show your PR templates. What's the average review time?

15. Technical debt is inventoried with severity ratings
List known debt items, effort to fix, and business impact of leaving them.

16. Dependencies are up to date (no critical CVEs)
Run npm audit / pip-audit. Fix all critical and high severity issues.

17. License compliance verified for all dependencies
Any GPL in a commercial product? Any unlicensed code? Audit now.

18. Meaningful commit messages and clean git history
Can someone understand your last 3 months from git log? If not, fix it.

19. No dead code or unused features in production
Audit and remove. Dead code is liability, not asset.

20. Error handling is consistent and comprehensive
What happens when things fail? Do you log? Alert? Retry? Document patterns.

Security issues are the #1 deal-killer. A single critical vulnerability can tank a deal.

21. All data encrypted at rest and in transit
TLS everywhere. Encrypted database columns for PII. Document your approach.

22. MFA enabled for all internal tools and admin access
No exceptions. If AWS root has no MFA, fix it today.

23. SOC 2 Type II certified (or formal readiness assessment)
If not certified, get a readiness assessment showing path to compliance.

24. Penetration test completed within last 12 months
Third-party pentest only. Internal audits don't count. Share the report.

25. All critical and high pentest findings remediated
If you have open critical findings, the deal stalls. Period.

26. Data handling and privacy policies documented
GDPR/CCPA compliance. Data retention policies. Right to deletion process.

27. Access controls follow principle of least privilege
Who has production access? Why? Audit and tighten.

28. Audit logging enabled for sensitive operations
Can you answer "who accessed what, when"? You'll be asked.

29. Incident response plan exists and has been tested
When was your last incident? How was it handled? Document the process.

30. Secrets management uses proper tooling (not .env files in git)
Use Vault, AWS Secrets Manager, or equivalent. Show your approach.

The team is often more valuable than the code. Acquirers evaluate both.

31. Engineering org chart with clear reporting lines
Who reports to whom? What are the team structures?

32. Key person dependencies identified and documented
If your CTO leaves tomorrow, what breaks? What's the bus factor?

33. Retention plans exist for critical engineers
Vesting schedules, equity refresh, retention bonuses. Document it.

34. Onboarding process documented (new engineer productive in 2 weeks)
Show your onboarding docs. How long to first PR? First deploy?

35. Development process is defined (sprint planning, standups, etc.)
Whatever methodology you use, document it consistently.

36. Deployment frequency documented (daily, weekly, etc.)
How often do you ship? What's your lead time from commit to production?

37. On-call rotation exists with escalation procedures
Who gets paged at 3am? What's the escalation path? Show the schedule.

38. Engineering hiring process is defined and repeatable
Interview process, scorecards, offer process. Document it all.

39. Performance review process exists for engineers
How do you evaluate and grow engineers? Show the framework.

40. Knowledge sharing practices (docs, design reviews, demos)
How does tribal knowledge become documented knowledge?

Documentation proves you can operate at scale. Missing docs = hidden risk.

41. System architecture diagrams are current and accurate
Updated within last 6 months. Include data flows and dependencies.

42. API documentation is complete and accurate
OpenAPI/Swagger specs for all endpoints. Postman collection as bonus.

43. Database schema documented with relationships
ERD diagrams. Table descriptions. Migration history.

44. Deployment and infrastructure diagrams exist
AWS/GCP architecture. CI/CD pipeline flow. Show the whole picture.

45. Disaster recovery plan documented and tested
RTO and RPO defined. When was the last DR test?

46. Backup and restore procedures verified
How long to restore from backup? Have you actually tested it?

47. Monthly infrastructure costs documented and optimized
What do you spend? Where? Is there waste to eliminate?

48. Monitoring and alerting covers critical paths
What breaks silently? Show your dashboards and alert rules.

49. Uptime history documented (target: 99.9%+)
Show your uptime over last 12 months. Explain any major outages.

50. Technology roadmap aligned with business goals
Where is the tech going in 6-12 months? How does it support the business?

Due diligence involves your whole engineering team. Prepare them:

Before Due Diligence:
- Brief the team on what's happening (if you can disclose)
- Identify who will answer technical questions in each domain
- Prepare engineers for potential interviews
- Align on key messages about technical decisions

During Due Diligence:
- Designate a technical POC (often CTO or lead)
- Set up data room access efficiently
- Respond to questions within 24 hours
- Document all Q&A for future reference

Team Interview Prep:
- Practice explaining architectural decisions
- Be honest about challenges (they'll find them anyway)
- Focus on problem-solving approaches
- Show passion for the product and technology

We perform full technical due diligence in 48 hours. You get:

What We Deliver:
- Complete 50-point assessment with scores
- Risk inventory with severity ratings
- Remediation roadmap with effort estimates
- Executive summary for investors/acquirers
- Data room ready documentation

Why Startups Choose Us:
- We've supported 2 successful acquisitions (OddsJam, Rupa Health)
- $35M+ ARR guided through investor diligence
- Former engineering leads who've been on both sides

Book a call to discuss your timeline and goals.