Jane Smith
Case Study: Technology Governance for Westhill Capital (UK)
Sector: Private Investment | Focus: Technology Governance, Due Diligence, and Risk Mitigation
Background
Westhill Capital, a UK-based investment firm with a legacy in property, made a strategic shift to include early-stage technology ventures in its portfolio. Their first foray into the tech sector was a significant investment in a start-up developing a video-based driver fatigue monitoring system. The product relied on offshore third-party software development.
As development milestones slipped and requests for additional funding became frequent, the Westhill Capital Board grew increasingly concerned. They lacked visibility into the true status of the project and had limited in-house capability to assess whether the reported progress, costs, or product potential were credible.
Challenge
The Westhill Capital engagement was to provide board-level oversight and governance expertise to address the following key questions:
Progress Validation – Is the product development at the stage being reported? If not, what’s the actual status, and why are there delays?
Cost Assessment – Are development costs reasonable and aligned with the work completed and industry standards?
Market Reality Check – Is the reported level of market interest and product potential realistic?
Ongoing Governance – How can the board gain ongoing, trusted insight into the project’s development?
Approach
A comprehensive review was conducted that included:
Full analysis of technical documentation, development reports, and vendor agreements
Interviews with key personnel across the start-up and vendor teams
Technical assessment of the current product, including an independent expert review of code quality and development effort
Independent market analysis to evaluate commercial potential
Findings
The investigation revealed critical governance failures:
Development Misrepresentation: The actual development was significantly behind what had been reported.
Process & Capability Gaps: The start-up lacked the skills to effectively scope, procure, or manage outsourced software development.
Vendor Concerns: Code quality was poor, progress reports were misleading, and associated costs were inflated.
Validated Market Potential: Independent market analysis confirmed commercial interest aligned with the start-up's original claims.
Outcome
As a result of the findings:
The board halted the existing development arrangement to prevent further risk exposure.
Andrew facilitated the selection and contracting of a new, credible software development partner.
Robust governance and reporting mechanisms were implemented, including real-time development tracking and independent milestone validation.
Impact
External advice and intervention protected Westhill Capital from continued financial risk and strengthened their approach to technology governance. The board gained confidence in its ability to make informed decisions in the technology space, laying the foundation for more disciplined and successful future investments.