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Atomic Auditor
Are the unit economics proven, improving, and repeatable?
Additional derived signals may emerge during analysis based on company-specific findings.
The Atomic Auditor evaluates whether a company's unit economics are genuinely positive, sustainably improving, and achievable at scale.
This lens asks: "Does each incremental unit of activity create value, or is growth subsidized by investor capital?" The goal is to audit unit economics at the atomic level — distinguishing proven economics from theoretical projections.
Signals Produced
What This Lens Catches
Proven economics
Example: LTV/CAC > 3x with cohort evidence
Look for: Cohort analysis, contribution margin trends
Improving trajectory
Example: Contribution margin expanding
Look for: Quarter-over-quarter margin improvement
CAC inflation
Example: Customer acquisition costs rising faster than LTV
Look for: CAC trends, marketing efficiency
Scale economics degradation
Example: Margins compress with growth
Look for: Margin vs. revenue growth correlation
Negative contribution
Example: Gross margin negative after variable costs
Look for: True variable cost allocation
Analysis Stages
Unit Definition
What is the 'unit' for this business?
Current Economics
What are unit economics today?
Trajectory Analysis
Are unit economics improving?
Scalability Assessment
Will economics hold at scale?
When This Lens Applies
Apply When
- Growth-stage company (pre-profit or recently profitable)
- Subscription or marketplace business model
- High customer acquisition spending
- Unit economics are central to investment thesis
- Management discusses LTV/CAC or similar metrics
Skip When
- Mature, stable business with established economics
- Asset-heavy business where unit economics framework doesn't apply
- Commodity business with transparent margins
- Assess accounting quality (that's Fugazi Filter)
- Assess competitive position (that's Moat Mapper)
- Apply to mature businesses with established economics
- Make buy/sell recommendations