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What the coverage map is

The coverage map is an 11-topic grid that shows due diligence progress on a project at a glance. It appears on every project in the DD stage and is visible to the Project Lead, angel members, and admins. Each topic shows one of three states:
  • 🟢 Green — this area has been addressed in DD
  • 🟡 Amber — this area has been partially addressed; further investigation is needed
  • 🔴 Red — this area has not yet been investigated
The coverage map does not assess the quality of what was found — it tracks whether an area has been looked at. A green topic means the work has been done; it does not mean there are no concerns. Read the underlying work package findings to understand what was actually found.

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The 11 topics

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1. Business model

How the company makes money. Revenue streams, pricing, unit economics, gross margin, and the sustainability of the commercial model. A company with a clear, proven revenue model is lower risk than one with an unproven or complex monetisation approach.

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2. Team

The founding team and key hires. Domain expertise, commercial experience, complementary skills, full-time commitment, and track record. Team is consistently the most important factor in early-stage investment — the business will change, but the team executing it largely will not.

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3. Intellectual property

What the company owns or controls that competitors cannot easily replicate. Patents, trade secrets, proprietary data, algorithms, brand, and network effects. For technology companies and university spinouts, IP is often the primary source of value.

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4. Market and competition

The size and dynamics of the market the company is addressing, and how the company is positioned relative to competitors. A large market with weak competition is ideal; a small market or one with dominant incumbents raises the barrier to a meaningful return.

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5. Product

What the product is, how developed it is, and whether customers value it. Customer validation, retention data, and product-market fit evidence. A product that customers pay for and return to is fundamentally de-risked compared to one that exists only as a prototype.

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6. Financial model

The company’s financial projections, the assumptions underpinning them, and how they hold up under stress testing. Runway, burn rate, path to break-even, and the use of funds being raised. See the financial modelling guide in AngelAI for the specific stress tests to apply. Company incorporation, cap table, shareholders agreement, key contracts, regulatory compliance, and any outstanding litigation or disputes. Legal surprises late in DD are a common deal-killer — this area should be investigated early.

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8. EIS/SEIS eligibility

Whether the company and the proposed investment structure qualify for EIS or SEIS relief. Advance assurance status, any eligibility concerns, and the implications of the deal structure for investor tax relief.

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9. Commercial traction

Evidence that the market is responding to the company’s product or service. Paying customers, revenue growth, pipeline, partnerships, and letters of intent. Traction is the most reliable indicator of product-market fit and team execution capability.

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10. Exit potential

Who the likely acquirers are, what comparable exits have looked like in this sector, and whether a credible path to a return exists. Angel investment is illiquid — understanding the exit landscape before investing is essential.

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11. Risk and decision

A synthesis of the key risks identified across all work packages, the mitigants available, and the overall investment case. This is the Project Lead’s overall assessment — the WNTBB summary lives here.

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How the Project Lead uses the coverage map

The Project Lead updates the coverage map as DD progresses. At the start of DD, everything is red. By the end, everything should be green or amber — red topics at the end of DD mean the area was not investigated, which is a gap that should be explained. Amber topics at the end of DD are acceptable if the Project Lead has documented why full coverage was not possible and assessed whether the gap is material to the investment decision.