Case Study: Strategic Due Diligence in the Generative AI Software Market

Case Study โ€ข Technology

Strategic Due Diligence in the Generative AI Software Market

How Avenor helped a venture capital firm validate product roadmaps and distinguish marketing hype from true competitive differentiation through targeted expert recruitment.

Client: A venture capital firm
The Challenge

Validating Product Roadmaps for Investment

The client was conducting late-stage due diligence on a potential investment in a specialized enterprise software company. To finalize their investment thesis, the client needed clear, objective data to validate the target company’s product roadmap and distinguish between marketing hype and true competitive differentiation in the emerging Generative AI space.

With significant capital at stake, the firm required expert perspectives from industry insiders who could provide candid assessments of real-world AI capabilities versus vendor claims.

Key Questions to Address:
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What AI features are truly in production and being adopted by end-users
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What functional capabilities are currently considered essential "table stakes"
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What next-generation AI features will drive product differentiation over 6โ€“18 months
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How to distinguish marketing claims from genuine competitive advantages
The Avenor Solution

Sourcing Insiders for Strategic Due Diligence

Avenor conducted a custom recruitment program focused exclusively on senior executives with direct experience in this specialized software segment, specifically targeting leaders in Product, Sales, and Strategy roles at leading technology vendor firms. The aim was to secure primary, functional intelligence to assess the true market opportunity.

Targeted Strategy:
1
Executive-Level Focus
Targeted exclusively senior executives with direct experience in the specialized enterprise software segment.
2
Role-Specific Targeting
Engaged leaders in Product, Sales, and Strategy roles at leading technology vendors for comprehensive perspectives.
3
Functional Intelligence
Secured primary, actionable intelligence to assess true market opportunity and competitive positioning.

Experts Sourced and Delivered

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Vice President at a Leading Vendor
Shared 14+ years of experience in the space, spanning roles as a customer, vendor, and Big 4 consultant, with over 150 implementations completed.
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Director of GTM Programs
Provided an overview of AI as the biggest trend in the market, noting that AI capabilities will quickly become "table stakes" for competitive positioning.
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Vice President of Sales
Offered a decade of relevant sales experience and insight into how companies are integrating generative AI features for insights and risk assessments.
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Founder & CEO
Detailed the market shift away from simple repository systems toward AI-driven functionalities, specifically generative workflows and compliance.
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SVP & Global Head of Alliances
Explained that Generative AI is disrupting traditional players and is currently focused on autonomous redlining, conversational AI, and risk identification.
The Impact

Actionable Insights for Investment Confidence

By engaging this curated group of senior leaders, the VC firm gained a clear, actionable picture of the market and product reality, allowing them to finalize their investment decision with confidence:

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Validated "Table Stakes"
Confirmation that AI-driven features like automated redlining, risk identification, and conversational AI are rapidly becoming standard requirements.
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Real-World AI in Production
Insights into currently leveraged features, such as AI playbooks and AI assistants functioning like "junior lawyers" for redlining and negotiation.
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Competitive Landscape Analysis
Candid views on where different players stand in their Generative AI development, including leaders in AI adoption and market outliers.
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Future Direction
The market is shifting towards Autonomous Contractingโ€”AI-driven negotiation and execution using external LLMs in an agentic AI framework.

Key Takeaways: Avenor's Value in Investment Due Diligence

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Source Insiders
Directly engage senior executives at market-leading companies to assess product reality versus marketing claims.
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Guarantee Relevance
Target specific functional roles (Product, Sales, Strategy) to ensure a 360ยฐ view of market capabilities.
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Deliver Guidance
Provide the necessary market data to validate investment thesis and guide investment strategy.
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Enable Decisions
Support major investment decisions with high-value strategic intelligence essential for confidence.

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