IT and AI Due Dilligence of a startup
The customer, an investor in the mid-cap sector, intended to buy a startup that processes and enriches web content. Since the market in this field is very competitive and the use of artificial intelligence (AI) promises a high degree of automation, niologic was entrusted with the AI due diligence.
Our client wanted to strategically expand their investment portfolio with a startup in the area of content marketing. The target had recognized earlyon, that the processing could be designed very efficiently by means of automation. It was unclear to which extend the startup would potentially grow in the future in the AI area and how much intellectual property was contained in AI features of the platform. niologic carried out the AI Due Diligence.
niologic examined the software architecture, its individual components and the development teams in several individual steps and interviews. After an overview of the components, more profound tests of AI features were carried out. This involved checking service contracts and implementations, as well as assigning intellectual property in the area of AI without any doubt.
In the further process, the solutions found were compared to possible competitors of the target and to the individual components in order to be able to estimate the development or implementation costs.
Finally, the IT roadmap was checked for AI-contents and their feasibility. The aim was to compare worldwide knowledge and possible external solutions with the ideas on the roadmap and to make the time horizon plausible.
Result and customer value
As a result, our client received a Due Diligence report, which on the one hand examined the suitability of the existing software architecture for AI applications. Furthermore, we assessed the bound intellectual property and added value from the existing knowledge – implemented knowledge as well as employee potential. In addition, the report evaluated the startup’s future plans for feasibility.
The customer received a verifiable assessment of the platform’s unique selling points, as well as future growth and efficiency potential with AI. By comparing it to other solutions, the customer was able to assess AI features without having to know anything about them. Therefore, our customer was able to always enter further negotiations well informed.