Looking to confirm or crush my expectation as part of a business model. Are M&A like technology assessments somewhat standardized for angel investors or do you start by independently evaluating specific platform, data, code, technical architecture issues? I’m assuming there are individuals who seek technology risks for value opportunities while others avoid such risks. Is it common to ignore technology choices or are there other options I’m missing?

likesmart
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In my exp., companies still in the angel rounds of investing and most likely operating their businesses with prototypes or MVPs - effectively held together by bailing wire and chewing gum.
A knowledgeable angel would assume that once the company has money, most tech will get scrapped and rebuilt to something more robust - or at least it should. Companies that don’t do this early may wind up paying Accenture many millions to fix this 10 years down the road - if they’re still around.

A VC looking to invest $10 mil+ would likely take a more thorough approach to evaluating tech risk and looking for value opportunities as you describe it.

I can make a comparison to one of my brick n mortar businesses. We locked into equipment leases from a qualified but lower cost vendor - turned out the equipment was unreliable. So knowing what I know now, I wouldn’t invest in a company that relies on this vendor. Is it possible an investor may have vetted this? Perhaps, but it would have taken very specialized knowledge and caught before the company even launched

likehelpful

I love the breakdown and connection back to a relatable real example. Thanks!

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This is an area of M&A that interests me. I have worked across a number of tech stacks, am effective at eliciting how solutions work, and reasonable about predicting challenges. I’m not sure how to offer consulting along those lines. Open to any suggestions (without intending to hijack the thread)

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