Series A-C Funding Strategy: Technical Readiness for Due Diligence
Comprehensive guide to technical due diligence preparation. Code quality metrics, scalability benchmarks, and risk mitigation for investor confidence.
Technical Due Diligence Expectations
Institutional investors require comprehensive technical assessments before committing capital. Series A investors evaluate architectural decisions. Series B investors assess scalability. Series C investors verify enterprise-readiness. Preparation directly impacts valuation and term sheet outcomes.
Code Quality Metrics
| Metric | Series A Target | Series B Target | Series C Target |
|---|---|---|---|
| Test Coverage | 60%+ | 75%+ | 85%+ |
| Code Debt Ratio | < 10% | < 5% | < 3% |
| Cyclomatic Complexity | Avg < 5 | Avg < 4 | Avg < 3 |
| Duplication Rate | < 15% | < 10% | < 5% |
Scalability & Performance
Infrastructure Benchmarks
Demonstrate ability to scale to 10x current traffic without code changes. Show load testing results, database query performance analysis, and CDN optimization strategies.
Database Architecture
Schema designed for growth. Demonstrate sharding/partitioning strategy, read replica setup, backup recovery procedures. Avoid single points of failure.
API Performance
Response times under 200ms at p99. Rate limiting, caching strategy documented. Demonstrate monitoring and alerting systems for degradation detection.
Security & Compliance Posture
Due Diligence Checklist
Technical Risk Mitigation
Architectural Debt
Transparent roadmap for addressing monolithic architectures, microservices migration, or legacy system modernization. Demonstrate progress through metrics.
Dependency Management
Document all third-party integrations. Identify critical dependencies with contingency plans. Show security update processes and CVE monitoring.
Vendor Lock-In Risks
Demonstrate portability of data and systems. Show exit strategies if any vendor relationship changes. Avoid single-vendor architectures.
Documentation Requirements
Prepare comprehensive technical documentation: system architecture diagrams, data flow documentation, disaster recovery procedures, and compliance artifacts. Quality documentation accelerates due diligence reviews.
Prepare for Series Funding Success
We prepare technical foundations for Series A-C funding, conducting internal due diligence, remediation, and documentation to maximize valuation outcomes.
Schedule Fundraising Technical Review