Practical lessons in Technical Due Diligence

How technical due diligence supported a £4 million investment decision

Overview

A prominent investment firm focused on early-stage, high-growth science and technology companies approached IDS Group via contact form. With an existing multi-million-pound portfolio, they were looking for technical due diligence before proceeding with a £4 million investment in a cutting-edge robotics and AI software platform.

The goal was to assess the target company’s technical foundations. This included their tech stack, security measures, compliance and business growth potential. IDS Group’s structured technical due diligence process provided the insight needed to move forward with confidence.

The project at-a-glance

  • IDS Group conducted technical due diligence on a robotics and AI software platform
  • Audit covered security, scalability, compliance and software architecture
  • Multiple workshops held to establish a full technical and business understanding
  • Findings supported a £4 million investment decision
  • IDS Group was retained for further cutting-edge technology assessments

The requirement

DS Group were approached by a multi-million-pound investment company through a website enquiry. They were evaluating a potential £4 million investment in a robotics and AI platform – and needed an in-depth audit to determine its viability.

The client’s key concerns included:

  • The condition of the target company’s technology stack and security posture
  • The scalability of the platform to support business growth
  • Whether best practices were followed in software development and release management
  • Potential risks in code security, dependencies and compliance

For such an investment, the client required a full audit of the platform. This included a structured traffic light risk report to summarise strengths, weaknesses and areas for improvement.

IDS Group was tasked with delivering this within a two to four-week timeframe. The findings would, ultimately, help the company determine whether to proceed with the investment. It would also consider any future improvements that could maximise long-term returns.

Our solution

IDS Group’s in-depth audit of the robotics and AI platform began with a series of technical workshops. These sessions helped us gain insights directly from the development team and product owners – making sure that all aspects of the system were fully covered.

The audit investigated the technology from many angles, including:

  • The current tech stack, security policies and change control procedures
  • A full review of the codebase, including structure, programming languages and open-source components
  • A security assessment, including penetration testing and analysis of vulnerabilities
  • A growth and scalability review, providing recommendations for optimising future development

Findings were delivered in a structured report, outlining risks and opportunities. During the review, IDS Group assessed the platform against industry best practices, identifying and addressing any gaps.

Following the report, IDS Group worked with the client to resolve identified issues. The outcome demonstrated that the platform was of a high technical standard – supporting its potential for future growth, success and returns.

The results

IDS Group’s technical due diligence process provided the client with a clear, unbiased assessment of their target company’s technology. The findings confirmed that the tech was of excellent quality – specifically, that it was:

  • Well-structured in terms of code
  • Secure and able to meet compliance concerns
  • Able to scale without any major overhauls in technology

Overall, this assurance supported the client’s £4 million investment. In validating the platform’s strengths and identifying areas for future optimisations, IDS Group helped the client move forward with confidence – not just in terms of the technology, but also in the business itself.

As a result of this successful engagement, IDS Group was recommended for further due diligence projects within the company. Our expertise continues to support the client’s high-compliance technology investments.

  • Comprehensive technical due diligence validated a multi-million-pound investment opportunity
  • Supported a significant investment decision with clear risk assessments from multiple technological and business angles
  • IDS Group retained for further high-tech due diligence projects within the client’s growing investment portfolio

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