Contracting Entity: Shift Invest
Start Date: December 2021
End Date: February 2022

project description

In a due diligence report we reviewed the technical and commercial underpinnings of an investment target for Shift Invest. We reviewed the technological choices, product roadmap, security risks and tech staff. Additionally, we reviewed the codebase of the technology, identifying potential security vulnerabilities, performance bottlenecks, or other technical issues that could impact the investment target’s performance. Additionally, we provided an in-depth review of the commercial aspects of the business (commercial due diligence). Including a review and opinion on the value model of the company, token economics, licensing models and the go-to-market strategy.

Warren Brandeis role

The scope of work requested by the client, in relation to the Company under evaluation, consisted of a technical and commercial due diligence of the Company’s Software-as-a-Service platform.

The technical due diligence performed by Warren Brandeis included the following elements:

  • audit of Company’s SaaS platform architecture,
  • preliminary audit of Company’s SaaS platform smart contracts,
  • analysis, evaluation, and recommendations of standards and guidelines for developer operations in relation to Company’s SaaS platform, and
  • evaluation of the readiness of the Company’s SaaS platform for ISO27001.

The commercial due diligence to be performed by WBNoDE will include the following elements:

  • viability of the business model (software as a platform for others to build software vs. Company building direct application for specific use cases, e.g., traceability),
  • feasibility of the go-to-market channels (partner integrators, direct-to-consumer, etc.),
  • the technology’s efficiency and effectiveness in reducing future transaction costs at scale,
  • the Company’s product or service offerings, including the features, functionality, and benefits, how the product/service is differentiated from competitors, and if the product addresses real customer pain points in the market,
  • the potential for customer acquisition, retention, and building recurring sales volumes,
  • the pricing strategy for the direct and partner subscription model as compared to the market,
  • the customer acquisition cost for the direct and partner subscription model, and
  • the Company’s competitive position, including its strengths and weaknesses.

The deliverables of the due diligence process included the

  • Technical Due Diligence Report and the
  • Commercial Due Diligence Report.

key challenges

  • Evaluate platform’s cybersecurity risks

  • Assess technical soundness of platform’s underlying architecture

  • Perform audit of platform’s smart contracts