Angel investors
How should an angel examine early traction claims from a developer infrastructure startup?
a developer infrastructure startup: Examine traction metrics through their definition, denominator, period, and supporting records.
Examine traction metrics through their definition, denominator, period, and supporting records. A growth percentage can describe a tiny base or a changing cohort. Bookings, cash collected, revenue, active use, and pipeline should not be treated as interchangeable.
Start with the decision
Reconstruct a small sample from the underlying records when authorized. Ask about exclusions, refunds, services, incentives, and changed definitions. Have the finance owner or an independent specialist address formal accounting questions.
The illustrative scenario
This is an educational workbook. The company or fund and all numerical inputs below are fictional. They are not ADIN results, customer claims, market benchmarks, or a forecast.
The fictional company maintains an open-source integration library and offers a hosted service. Downloads are growing, but paying teams are few. A small group of maintainers handles support, releases, and infrastructure incidents.
Community activity and commercial demand overlap imperfectly. Count organizations and actual production use separately from package downloads, forks, and repeat installs.
Turn the scenario into an evidence decision
Consider a review of a developer infrastructure startup in which a confident explanation arrives before the supporting records. Start with the first question in the table. Write down what an answer would change: the next interview, the experiment's scope, a request for specialist review, or a decision to wait. A question without a consequence can produce a longer document while adding little understanding.
Next, inspect the record named in the table and record its date, owner, permission boundary, and limitations. Review production references, hosted conversion cohorts, support workload, repository ownership, and release history. Check the permission to reuse code and data rather than assuming public availability grants every right. If the record contradicts the explanation, preserve both accounts and ask which definition, period, or workflow differs. Do not silently select the version that makes the opportunity look strongest.
Finish with a conditional statement: if the specified evidence supports the claim under these conditions, take the named next step; otherwise investigate the unresolved question. A metric is useful when it answers a relevant question and can be interpreted consistently. A precise number with an unclear definition can create more confidence than the evidence warrants. This worked exercise is about the decision process. It does not assert that a fictional company has met a real diligence standard or that a template can authorize an investment.
| Item | Illustration |
|---|---|
| Decision question | What is the metric definition? |
| Case-specific constraint | Community activity and commercial demand overlap imperfectly. Count organizations and actual production use separately from package downloads, forks, and repeat installs. |
| Record to inspect | Review production references, hosted conversion cohorts, support workload, repository ownership, and release history. Check the permission to reuse code and data rather than assuming public availability grants every right. |
| Comparison to preserve | Compare the commercial workflow with the free alternative. Identify who has budget for reliability, support, or managed operations. |
| Unresolved case question | Which users have buying authority? |
Use this worksheet
Answer the questions with a source, date, owner, and next action. Mark an unknown as unknown. Use public or permissioned information and involve a qualified specialist when a question requires expertise beyond the team’s competence.
- What is the metric definition?
- What is the denominator?
- Which period is covered?
- What was excluded?
- Can the figure be reconciled?
Questions specific to this scenario
- Which users have buying authority?
- What makes a hosted account renew?
- Who can maintain the critical dependencies?
Review production references, hosted conversion cohorts, support workload, repository ownership, and release history. Check the permission to reuse code and data rather than assuming public availability grants every right.
A concrete next test
Ask one production user of the free library and one hosted customer what would make them switch or stop paying. Keep their roles and deployment needs separate. Compare their answers with the proposed commercial conversion path and actual support workload.
Interpret the result
A metric is useful when it answers a relevant question and can be interpreted consistently. A precise number with an unclear definition can create more confidence than the evidence warrants.
Compare the commercial workflow with the free alternative. Identify who has budget for reliability, support, or managed operations.
Sources and method
These primary resources provide background for the concepts. The fictional scenario, calculations, and worksheet are ADIN educational examples; the sources do not report or validate those invented results. Reviewed October 11, 2026.