Outsourced product development services from companies like Resolution have clear benefits to research and development organizations and entrepreneurs during most stages of their project. But, what about the investors in the project? What role, if any could an outsourced product development firm play through a partnership with the venture capital firms funding these strategic development projects?
There are clear areas where venture capital firms can realize benefits when partnering with outsourced product development firms like Resolution Development Services. Two specific areas of opportunity are during the due diligence phase, and in the event that the project that may be struggling or without a clear path to completion.
For venture capital, the due diligence process is critical to gaining a clear understanding of the potential business investment, how it should be valued, where areas of risk are, defining the investment timeline, and what the ROI of the investment could be. Due diligence needs to be objective, and free from any emotion, but as any investor will tell you, emotion plays a role.
A venture capital firm may get excited about a proposed new technology or product, and that excitement could cloud some of the due diligence. A partner like Resolution can offer an objective view to the proposed product, development timelines, and technical feasibility. This objective, 3rd party insight helps the venture capital firm mitigate the risk of their investment, and either uncover any issues prior to committing capital or help validate that decision.
As a product development firm with more than a decade creating complex devices across various industries, Resolution can assess the hardware, software, imaging technology, FPGA and other components being proposed, and objectively assess how realistic the timelines and development budget are. The result is a full written report of risks and a frank assessment of the project.
Resolution has been called in on many occasions to help a project that has fallen off-track or is in distress. Resolution works directly with the VC firm and company to perform a detailed analysis of the current project status, identifying the root causes of the delay or distress and potential solutions to bring the project back on track.
When rescuing projects, we help the company regain confidence with their venture capital investors through clearly defined milestones and transparency in the process.
Product development firms like Resolution can be a key strategic partner to venture capital firms either during the due diligence phase or in the event that the project falls off track with no path to completion.
To learn more about Resolution’s proven approach to projects, visit our 911 Project Rescue page.