March 20, 2025
Behind every revenue growth story, key technology decisions are often the unsung heroes—or villains. For investors, spotting these technical enablers or constraints during due diligence can reveal a company's true potential beyond what sales pipelines suggest.
Companies with modular, flexible architectures can quickly adapt to new market opportunities without rebuilding their entire product. Our due diligence reports revealed that companies with "Modular Potential in both Back-end and Front-end" demonstrate "a well-designed, scalable architecture" that enables faster growth.
Meanwhile, rigid systems suffer from what one report identified as "architectural elegance & success but limited" capability, where the company "will quickly reach its limits" after which "more significant investments in engineering need to be made to break through to the next plateau."
Security and isolation capabilities built into a product's foundation dramatically impact enterprise sales cycles. Reports highlight that "effective isolation for enterprise customers" through technologies like Kubernetes ensures "robust isolation," which meets "enterprise expectations around security, compliance, and customization."
Companies lacking these foundations face what one report described as "security awareness is there, but overall process underdeveloped," creating friction in enterprise sales processes despite having valuable products.
Due diligence reports consistently show that integration capabilities directly impact revenue potential. One report noted a company with "external services used wisely" was able to "create a scalable online marketplace" and "prove their value and now scale up their efforts."
Conversely, companies with integration gaps face challenges. As one report highlighted: "onboarding time of customers might cause growth problems" where "customers can take months to onboard," creating a disconnect "between technical capabilities and enterprise reality" that impacts "activated MRR and cash flow when growing rapidly."
Reports identify that technical foundations directly enable pricing model flexibility. One assessment highlighted a "robust pricing model offers significant margin and flexibility" that provides "substantial margin for additional consumption" without affecting profitability.
By contrast, companies with technical limitations in their billing infrastructure demonstrate what one report called "unrecognized premium pricing poses churn and growth risk," where they "underestimate the competitive pressure of the market and the speed with which they will need to improve."
When evaluating tech architecture's revenue impact, our due diligence suggests asking:
Due diligence consistently reveals that architectural decisions have direct revenue implications. As one report accurately noted: "The step from using an external LLM to training your own, and moving from an iframe implementation to a full embedding, require significantly more engineering skills" - technical decisions that directly impact a company's ability to differentiate and capture market value.
