Angel investors
How should an angel reassess a follow-on opportunity in a climate software startup?
a climate software startup: Reassess a follow-on using the evidence and terms available now.
Reassess a follow-on using the evidence and terms available now. The original investment decision is context, not a reason to ignore changes. Compare the company's progress, cash needs, price, rights, and alternatives with the assumptions behind the first check.
Start with the decision
Write a changed-evidence memo before deciding. Separate new facts from a desire to defend the earlier investment. Identify what participation would change in exposure and what information remains unavailable.
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 product helps building operators reconcile energy data. A facilities team uses the dashboard, while a finance manager approves spending. Deployments depend on meter access and consistent records across properties.
A claimed environmental benefit is different from a measured change attributable to the product. Separate data quality, operational action, and any externally verified result.
A simplified priced-round and cash comparison
Assume a fictional priced equity round of $2,500,000.00 at a pre-money value of $10,000,000.00. A $20,000.00 check divided by the simplified post-money amount produces 0.160% ownership. If a later issuance reduces existing holders by an assumed 25%, that interest becomes 0.120% without participation.
The exercise omits option pools, convertibles, preferences, fees, side agreements, and other actual terms. It is not a SAFE conversion model or a recommendation to invest or preserve ownership. Actual cap-table and document analysis belongs with qualified advisers. A percentage of ownership does not specify eventual proceeds or protect against total loss.
The fictional company's $550,000.00 of cash divided by $70,000.00 of monthly use gives 7.9 months under a constant-use assumption. Compare the full deployment process with the operator's current reporting. A useful dashboard still needs someone able to act on its findings. Connect that simple quotient to dated obligations and milestones before drawing a conclusion about financing needs or progress.
| Item | Illustration |
|---|---|
| Assumed pre-money value / round size | $10,000,000.00 / $2,500,000.00 |
| Fictional investor check | $20,000.00 |
| Simplified initial ownership | 0.160% |
| Assumed later dilution | 25% |
| Ownership without later participation | 0.120% |
| Cash / constant monthly use | $550,000.00 / $70,000.00 |
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 changed since the first check?
- Which milestone was reached?
- What terms are offered?
- What assumption failed?
- What alternatives exist?
Questions specific to this scenario
- Who supplies reliable data?
- Which savings are actually measured?
- How long does a property rollout take?
Inspect permissioned meter samples, installation requirements, operator references, and the method used for claimed savings. Keep comparison periods and missing readings visible.
A concrete next test
Trace one claimed operational saving from raw meter data to a documented action and comparison period. Ask which part is measured and which part is inferred. Keep missing readings and unrelated changes visible before using the claim in an investment discussion.
Interpret the result
A useful memo can support participation, a pass, or more inquiry. It should make the reasoning visible without implying that following prior winners or supporting struggling holdings is universally correct.
Compare the full deployment process with the operator's current reporting. A useful dashboard still needs someone able to act on its findings.
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.