Do investors ask for a security test?

Last reviewed 2026-09-30Written by Jacob Masse, TrazTech Inc.

Increasingly, at seed and later. Diligence questionnaires ask how the product was built, whether it has been independently tested, how customer data is protected, and whether there have been incidents. An app built largely with AI tools draws the testing question sooner. A recent test with fixed findings, a data flow diagram and a short security overview answer most of it.

Have ready

• A recent security test summary with retest results.
• A description of where data lives and who can access it.
• Your AI providers and their data terms.
• A privacy policy that matches reality.
• A record of any incidents and how they were handled.

Why investors care

A breach after investment is a valuation and liability problem. Diligence also checks whether the product can pass the security reviews of the customers the business plan depends on.

Typical diligence questions

• Has the product been independently security tested in the last 12 months, and were the findings fixed?
• Who has production access, and is it reviewed?
• Where is customer data hosted, and is it encrypted at rest and in transit?
• Which third parties, including AI providers, process customer data?
• Have there been any security incidents or data breaches, and were they reported?
• Is there a privacy policy, and does the product do what it says?
• What portion of the code was generated by AI, and how is it reviewed?

Answer accurately. A diligence answer that turns out to be wrong can become a representation in the investment documents. "Not yet, scheduled for next month" is a good answer if it is true.

Getting it checked

TrazTech offers vibe-coding QA and security review, listed from $2,000 CAD. Get at least one other quote on the same scope; the questions to ask a testing firm help compare them.

Related questions

• What will a buyer ask about our AI app?
• Do I need SOC 2 for my AI app?
• Build cheap, test properly

Common questions