The FundingDX Protocol

Forensic Analysis of Series A Investability.

The Diligence Reality

Most founders operate in "Product Thinking"—believing that if they build a better product, funding is inevitable.

Series A investors operate in "Asset Thinking." They do not fund products; they fund assets that generate a Return on Capital (ROC).

The FundingDX Protocol is not a pitch review. It is a forensic audit that translates your business into the Φ Score (Phi Score)—a predictive algorithm (0–1000) that calculates your probability of clearing Series A diligence.

The 7 Vectors of Risk

We stress-test your startup across seven specific dimensions of structural integrity.

  • Vector 1: Thesis Integrity (Φ)
  • Vector 2: Retention Physics (R)
  • Vector 3: Defensive Moat (D)
  • Vector 4: Unit Economics (U)
  • Vector 5: Tech/Ops Debt (T)
  • Vector 6: Growth Loops (G)
  • Vector 7: Burn Efficiency (B)

Deep Dive: The Vectors

1

Thesis Integrity (Φ)

The Founder-Market Fit Audit.

Ideas are commodities; investors fund Theses. We measure if you possess a "Non-Obvious Truth" about the market.

What We Audit: The "Alpha" (Market Insight), Founder Obsession vs. Opportunity, and the "Timing Multiplier" (Why now?).

The Red Flag:

"Your vision is clear, but your thesis is weak. You have identified a customer pain point, but not a market failure."

2

Retention Physics (R)

The "Leaky Bucket" Audit.

In Seed, "Resonance" means hype. In Series A, it means Physics. If you have high growth but low retention, you are not a business; you are a turnstile.

What We Audit: Psychological Entrenchment, Engagement Velocity, and Net Revenue Retention (NRR).

The Red Flag:

"You are renting traffic, not acquiring customers. Until we fix the physics, capital will only accelerate your churn."

3

Defensive Moat (D)

The Durability Audit.

Investors fear "Capital Destruction"—funding a company that gets crushed by a fast follower. We do not fund "Better" (which is a race to the bottom); we fund "Only".

What We Audit: Ecosystem Lock-in, Brand Authority, and the "Category King" Multiplier.

The Red Flag:

"You have a head start, not a moat. A head start is erased by capital. A moat is hardened by capital."

4

Unit Economics (U)

The GTM Efficiency Audit.

Series A investors do not fund growth at all costs; they fund Efficient Growth. A great narrative with bad unit economics is just a subsidy.

What We Audit: LTV:CAC Ratios, Payback Periods, and "Organic Leverage" (Viral Dynamics).

The Red Flag:

"You are acquiring customers for $500 who are worth $400. That isn't a business; that's a donation."

5

Tech/Ops Debt (T)

The Scalability Audit.

Can you add 10x the customers without adding 10x the headcount? We audit for "Operational Debt"—the manual work and spaghetti code that kills margins at scale.

What We Audit: Infrastructure Integrity, Development Velocity, and the Automation Multiplier.

The Red Flag:

"You are servicing customers with human capital instead of software. Series A funds automation, not administration."

6

Growth Loops (G)

The Organic Velocity Audit.

Funnels require fuel (cash). Flywheels spin faster with every user. We audit for "Acquisition Sovereignty": If ads turn off, do you keep growing?.

What We Audit: Viral Coefficient (K-Factor), Organic Mix, and Network Effects (N).

The Red Flag:

"You rely on 'linear' growth (1 Rep = 10 Deals) instead of 'exponential' growth (1 User = 2 Users)."

7

Burn Efficiency (B)

The Capital Velocity Audit.

"Momentum" is strictly a function of Capital Efficiency. We audit the Burn Multiple: Can this team turn $1 of VC money into $5 of Enterprise Value?.

What We Audit: Burn Multiples, Runway Reality, and the "SaaS Magic Number".

The Red Flag:

"Your Burn Multiple is 3.5x. You are purchasing growth at a deficit. We need to cut the fat before we add fuel."

The Master Algorithm

The FundingDX Diagnostic aggregates these 7 vectors into a single investability score.

The Φ Equation

Our proprietary algorithm weights risks multiplicatively, not additively. If a critical vector like Retention drops near zero, the entire score collapses.

The Diagnosis Scale (0–1000)

850 – 1000 "Sovereign Asset" Series A Ready. The leverage is on your side. Proceed to market.
700 – 849 "Investable Grade" Diligence Ready. Asset Quality is sound, but minor calibration is required.
500 – 699 "Structural Risk" Do Not Raise. You have a "Leaky Bucket" or Unit Economics failure. Raising now will result in rejection.
0 – 499 "Toxic Asset" Default Dead. Immediate pivot or recapitalization required.

Book Your Audit

Stop guessing. Get the Φ Score before you face the Investment Committee.

Book Diagnostic — $3,500