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Investment Technology Note

Ten technology questions that belong in the investment-committee paper

A concise set of questions for translating technology diligence into investment assumptions, conditions and post-close priorities.

Published 1 October 20266 minInvestment directors, principals and IC members

Key takeaways

What this means for investors

  • Technology diligence is most useful when it changes the quality of the investment decision, not when it produces a longer technical appendix.
  • The IC needs to know what the technology can support, what it cannot support and what needs funding or conditions after close.
  • Unresolved evidence gaps should be visible rather than converted into false confidence.

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Related Novarra capability

This topic maps to Deal Technology Due Diligence.

The ten questions

  • 1. Which part of the investment thesis depends materially on technology working as assumed?
  • 2. Can the current architecture and operating model support the growth case without disproportionate rework or cost?
  • 3. Which technology risks could change price, conditions, timing, reserves or the 100-day plan?
  • 4. Where are the largest key-person, vendor, cloud, data or platform dependencies?
  • 5. Does the product roadmap align with the commercial strategy and available delivery capacity?
  • 6. Is cybersecurity posture proportionate to the company's exposure, customer commitments and transaction context?
  • 7. Is the AI strategy credible, economically supportable and defensible—or mainly roadmap language?
  • 8. What technology investment is required in the first 12–24 months, and which items are non-discretionary?
  • 9. Which material questions remain unresolved because evidence was unavailable or access was constrained?
  • 10. What should the board expect to see 100 days after close to know that material findings are actually being addressed?

Why these questions matter more in 2026

A&M's 2026 diligence research describes investors balancing value creation with a stronger focus on downside risk while demanding more operational assessment alongside commercial and financial work. Technology readiness and leadership capacity are specifically part of that shift.

Crosslake similarly frames technology diligence around the investment strategy, company context and level of access rather than a fixed checklist. The common implication is that the diligence product should help the IC understand materiality, not merely catalogue weaknesses.

What should not happen

  • A high-severity technical issue should not automatically become a high-severity investment issue without explaining business materiality.
  • A management claim should not be reported as a verified fact unless the evidence supports it.
  • A missing document should not be treated as proof of either strength or weakness.
  • A remediation estimate should not be more precise than the evidence allows.
  • The technology adviser should not make the investment decision for the committee.

The decision-ready format

The most useful IC output is concise: what was examined, the material findings, the evidence confidence, the investment implications, required conditions, indicative remediation where supportable and the first post-close actions.

The technical appendix can be detailed. The IC page should be decision-ready.

Sources

Sources below support the factual and market-context statements in this note. Novarra's recommendations and questions are analytical interpretation, not claims made by the source organizations.

  1. European Due Diligence Report 2026 — Alvarez & Marsal, 2026-08-11
  2. Tech Due Diligence — Crosslake

Turn the insight into a decision.

If the issue is material to a live transaction or portfolio company, the next step is to define the evidence required and the decision the work needs to support.

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