Are you skipping technical due diligence to save costs? Well, that is like buying a car without checking the engine.
In today’s crowd of startup investments, technical due diligence (Tech DD) has become an essential checkpoint. For investors, it can be a risk mitigation tool that uncovers red flags before capital is deployed or a credibility builder tool that accelerates funding rounds for founders.
But how much does technical due diligence cost?
The answer isn’t basic math. The cost of technical due diligence varies based on scope, startup stage, geography, and depth of assessment. Getting clarity on these costs beforehand ensures that you’re making informed decisions about this crucial investment.
Why Technical Due Diligence Matters Before Investing?
If you are planning to let go of Tech DD before investing, here’s what you must know then:
For Investors: Avoiding Costly Mistakes
- Many startups have untested or fragile tech stacks that face failures during scaling. Tech DD exposes these risks before you invest.
- A product that works for 1,000 users may fail at 100,000. With Technical Due Diligence, you can do the stress-testing to prevent post-investment disasters.
- Tech DD will help you scan issues like outdated libraries, hosting, or unchecked tech debt, which can kill your productivity and bring challenges to scalability.
For Startups: Building Investor Confidence
- A clean Tech DD report justifies higher funding asks by proving technical maturity.
- Investors show a great interest when due diligence is pre-emptively addressed.
- Fixing architectural flaws early will help you avoid expensive rebuilds later.
Also Read: Technical Due Diligence: Meaning, Process, Checklist
Typical Pricing Models for Tech Due Diligence
Technical Due Diligence (Tech DD) isn’t a one-size-fits-all service—it comes in flexible pricing models to fit different investment stages, startup requirements, and engagement needs.
Let’s have a look at the Dexterlab’s technical due diligence cost breakdown & offering:
| Model | Ideal For | Duration | Pricing (USD) | What You Get |
| Dipstick | Quick audits (Pre/Post Investment) | 1 week | $5,500 | Stack review, architecture check, code & cloud assessment, AI integration |
| Comprehensive | Full-scale tech evaluations | 3–4 weeks | $22,000–$50,000 | Tech roadmap, scalability, IP review, AI DD, privacy & security, team skill gap |
| Remediation Workshop | VCs with multiple portfolio reviews | 3–6 months | $12,000–$15,000/month | Ongoing audits, CTO office advisory, AI consulting, and remediation workshops |
Factors That Influence the Cost of Technical DD
Several key factors contribute to determining the overall cost of Technical DD:
Codebase Architecture and Tech Stack Complexity
A simple mobile application will cost significantly less to audit than a complex SaaS platform with various microservices and multiple integrations. The more technologies involved, the more you can expect the price to rise.
Startup Stage
Early-stage startups with MVPs typically require less extensive technical reviews than mature products. A pre-seed company might only need a basic architecture assessment, while a Series B company requires deeper security audits and scalability testing.
Assessment Depth
Dipstick audits cover high-level architecture and surface-level risks at a lower cost. Comprehensive assessments dive deeper into scalability, security, code quality, and AI readiness, justifying a higher investment.
Turnaround Time
Express audits delivered in days rather than weeks typically ask for premium pricing. Standard timelines range from 2-4 weeks, while rush jobs might incur 25-50% surcharges.
Regional Rate Differences
Due diligence costs vary significantly by region:
- Silicon Valley firms typically charge premium rates for premium services
- European providers generally fall in the mid-range
- India-based services offer competitive rates with similar quality standards
Average Cost Ranges for Tech Due Diligence (Region-wise)
- USA: $5,000 – $25,000
- UAE: AED 12,000 – AED 70,000
- Singapore: SGD 7,000 – SGD 20,000
India-based tech firms such as Dextralabs provide cost-effective technical due diligence services. Our approach includes offering flexible engagement models like the CTO Office service, which delivers strategic tech leadership without the expense of a full-time CTO.
Hidden Costs That Can Blow Your Budget
Cost of Delay
Tech DD isn’t expensive; perhaps the most significant hidden cost in the due diligence is delayed funding rounds or acquisition timelines caused by inadequate technical assessment. A slow or incomplete Tech DD can stall deal momentum.
Repeat Audit Expenses
Low-quality technical audits often miss critical issues, requiring follow-ups and frequent cross-checks. Choosing a reputable provider from the start prevents these duplicate expenses.
Identifying and Fixing Bloated Maintenance Costs
Technical Due Diligence (Tech DD) helps uncover inefficiencies in your tech stack, including bloated maintenance costs that could drain resources in the long term.
How to Choose the Right Tech DD Partner Without Overpaying?
Compare Scope Thoroughly
Request detailed assessment outlines from your potential provider. Quality Tech DD should include architecture review, code quality assessment, scalability evaluation, security testing, and technical debt analysis.
Look for Multi-Domain Experience
Technical due diligence for software differs significantly from hardware, and each industry has its unique challenges. Instead of focusing on firms with expertise in just one domain, look for teams that have multi-domain experience.
Request Sample Deliverables
Ask to see anonymized sample reports or assessment checklists to evaluate thoroughness and reporting quality.
Consider Hybrid Models
Firms offering “global rates with local expertise” (like Dextra Labs) often provide the best value, combining reasonable pricing with deep technical knowledge and market-specific compliance understanding.
Why Dextra Labs Delivers Unmatched Cost Efficiency?
- Transparent Pricing: No hidden fees; fixed-scope or hourly options.
- Indian Cost Advantage: 3.5K–12K for audits matching US/EU quality.
- Global Compliance: Meets SEC (US), ADGM (UAE), and MAS (Singapore) standards.
- Fast Turnarounds: 2–3 weeks standard; expedited options available.
Ready to take the plunge?
Request a Quote or Free Tech DD Scope Today
Final Words
Technical due diligence isn’t just a cost—it’s an investment in your company’s future. Cutting corners on technical due diligence risks far greater losses than the audit’s cost. For investors, it’s a shield against bad bets. For startups, it’s a tool to command higher valuations.
For more information about Dextralabs’ technical due diligence services and pricing options, visit our pricing page or Contact our team directly.
