Scouts
What should a scout verify before introducing a consumer product startup?
a consumer product startup: Verify fit and basic facts before introducing a company, while remaining clear about what has not been investigated.
Verify fit and basic facts before introducing a company, while remaining clear about what has not been investigated. Confirm the founder's permission, the current fundraising situation, and the reason the opportunity might match the fund. Avoid promising investment authority the scout does not have.
Start with the decision
Prepare a short claim-and-source note. Separate direct observations, founder statements, and open questions. Ask the fund which evidence is necessary for an initial screen rather than overcollecting confidential material.
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 offers a paid learning app. Early signups followed a launch promotion, and the founder is testing whether users return without discounts. Marketing, support, and content costs vary across cohorts.
A download or free trial does not establish retention or willingness to pay. Separate acquisition cohorts, renewal behavior, refunds, and incentives before extrapolating growth.
Turn the scenario into an evidence decision
Consider a review of a consumer product 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. Inspect consented aggregate cohort data, paid renewals, acquisition spending, refunds, and changes in the product experience. Keep sponsored or incentivized usage visible. 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 screen is a filter for a useful conversation, not a completed diligence process. A transparent open question is preferable to a confident claim that the scout cannot support. 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 | Is the company within mandate? |
| Case-specific constraint | A download or free trial does not establish retention or willingness to pay. Separate acquisition cohorts, renewal behavior, refunds, and incentives before extrapolating growth. |
| Record to inspect | Inspect consented aggregate cohort data, paid renewals, acquisition spending, refunds, and changes in the product experience. Keep sponsored or incentivized usage visible. |
| Comparison to preserve | Compare continued paid use with the initial launch spike. A narrow engaged cohort can be more informative than a large blended signup total. |
| Unresolved case question | Who renews without a discount? |
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.
- Is the company within mandate?
- Is the founder seeking this introduction?
- What has been directly observed?
- What remains unverified?
- Who makes the next decision?
Questions specific to this scenario
- Who renews without a discount?
- Which acquisition cohort is comparable?
- What happens after the promotion ends?
Inspect consented aggregate cohort data, paid renewals, acquisition spending, refunds, and changes in the product experience. Keep sponsored or incentivized usage visible.
A concrete next test
Compare a launch-promotion cohort with a later group using the same renewal and refund definitions. Ask what changed in price, acquisition channel, and product experience. Avoid attributing a blended retention change to the product before checking those differences.
Interpret the result
A screen is a filter for a useful conversation, not a completed diligence process. A transparent open question is preferable to a confident claim that the scout cannot support.
Compare continued paid use with the initial launch spike. A narrow engaged cohort can be more informative than a large blended signup total.
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.