Thanks! It does explain it. It's an interesting concept for sure; I guess VCs want to make sure the money they are investing is as safe as possible, and taking a hard look at the engineering behind the company is a part of the due dilligence. (If I understood the business model correctly). And startups are probably not too keen on sharing their code and IP like that but the VCs will pressure them to do it. I kinda like it :)
Yes, you got it perfectly. Start-ups are especially wary of sharing their IP with VCs or their portfolio companies so we come in handy as trusted third party (trusted by both) to not leak critical IP while still being able to say something useful about it.
