Make investment and acquisition decisions backed by rigorous technical assessment. We evaluate architecture, code quality, team capability, and scalability risk so you can invest with confidence.
In technology-driven companies, the codebase is the asset. A beautiful product demo can mask a fragile architecture, crippling technical debt, or a team that cannot scale. Technical due diligence from Arthiq gives investors and acquirers an honest, expert assessment of what lies beneath the surface, enabling you to price risk accurately, negotiate appropriate terms, and plan post-investment priorities.
We have seen deals where a two-week technical assessment saved investors millions by uncovering infrastructure that would require complete rebuilding, codebases with critical security vulnerabilities, or engineering teams with key-person dependencies that created existential risk. Equally, we have seen assessments that confirmed a target company exceptional technical quality, giving investors the conviction to move quickly on a competitive deal.
Our due diligence practice is led by engineers who have built and shipped production systems, not analysts reading from checklists. We understand the difference between cosmetic code quality issues and structural problems that will impede growth. This nuanced perspective is what makes our assessments actionable rather than merely informative.
Our technical due diligence covers six core areas. Architecture and system design evaluates the overall structure, service boundaries, data flow, and scalability ceiling. We identify single points of failure, tight coupling, and design decisions that constrain future growth. Code quality assesses coding standards, test coverage, documentation, and the presence of anti-patterns that indicate deeper structural issues.
Infrastructure and operations examines deployment processes, monitoring, alerting, disaster recovery, and cost efficiency. We evaluate whether the system can handle the growth implied by the investment thesis. Security and compliance reviews authentication, authorization, data protection, vulnerability management, and regulatory compliance relevant to the target market.
Team and process assesses the engineering team structure, skill distribution, hiring pipeline, development practices, and knowledge documentation. We identify key-person dependencies and evaluate whether the team can execute the post-investment plan. Finally, technology risk evaluates dependencies on deprecated technologies, vendor lock-in exposure, and open-source licensing compliance.
We begin with an NDA and scope agreement that defines the assessment areas, timeline, and access requirements. We then request read-only access to code repositories, infrastructure configurations, monitoring dashboards, and documentation. In parallel, we schedule interviews with key technical team members to understand the history and rationale behind architectural decisions.
Our team conducts a deep-dive analysis over one to two weeks. We review code, trace system flows, examine database schemas, audit security configurations, and test infrastructure resilience where permitted. We also analyze development velocity metrics, release history, and incident logs to understand operational health over time.
The deliverable is a comprehensive report structured for both technical and non-technical stakeholders. It includes an executive summary with a clear risk rating, detailed findings organized by assessment area, a risk matrix that maps findings to business impact, and a remediation plan with effort estimates. We present the findings in person and remain available for follow-up questions during your decision-making process.
Evaluating Web3 companies requires specialized expertise. We assess smart contract security, audit history, on-chain and off-chain architecture separation, token economics implementation, governance mechanisms, and regulatory compliance. We also evaluate the decentralization claims of the project, identifying where centralized components create risk or where decentralization is genuine and adds resilience.
For AI companies, we evaluate model performance, training data quality and provenance, inference cost structure, model freshness and retraining processes, and responsible AI practices. We also assess the defensibility of the AI approach by understanding whether the competitive advantage lies in proprietary data, custom model architecture, workflow integration, or some other durable factor.
This specialized expertise is critical because generic due diligence teams often lack the domain knowledge to identify Web3- and AI-specific risks. A smart contract vulnerability or a model that degrades without regular retraining can have catastrophic business implications that only domain experts would catch.
Due diligence does not end at the investment decision. We offer post-investment advisory services to help portfolio companies address the findings from our assessment. This can range from a focused remediation sprint to an ongoing fractional CTO engagement that provides continuous technical oversight.
For acquirers, we support the technical integration process, helping you merge codebases, consolidate infrastructure, and align engineering practices. Integration is where many acquisitions destroy value, and having an independent technical advisor ensures that decisions are made based on engineering merit rather than organizational politics.
Whether you are a venture capital fund, a private equity firm, a corporate development team, or an angel investor, our technical due diligence gives you the information asymmetry reduction you need to make confident decisions in a fast-moving market.
Do not let hidden technical risk undermine your investment. Our due diligence gives you the clarity to make informed decisions and plan post-investment priorities.