Our Research Methodology
TrancheBook provides AI-generated investment research on private technology companies through our proprietary analysis engine, Cole.
Cole
Cole is an autonomous analysis engine built on PraevexOS. It combines large language model capabilities with deterministic financial modeling to produce institutional-grade research on every company in our universe.
Unlike general-purpose AI tools, Cole maintains a persistent knowledge graph of every company in our universe, tracks data provenance through our DQL framework, and combines probabilistic reasoning with deterministic financial computation. Every projection is auditable — Cole shows its reasoning chain and cites every data source.
The Six Dimensions
Every company is scored 0–100 across six dimensions, weighted by their predictive importance for investment outcomes.
Revenue and ARR trajectory, acceleration, and path to scale
Net and gross revenue retention rates, churn analysis
Rule of 40, margin structure, path to profit
TAM sizing, competitive moat, category leadership
Regulatory, concentration, key-person, and market risks
Management depth, track record, technical talent
Each dimension is weighted based on its empirical predictive power for investment outcomes. Weights are proprietary and updated quarterly based on calibration data.
Update Cadence
Composite scores: recalculated weekly
Financial data: refreshed on earnings release or funding event
News signals: monitored continuously
Full IC packages: regenerated when material new data emerges
Data Quality Framework
Every data point in our system carries a Data Quality Level (DQL) from 1 (primary source, verified) to 5 (unverified). Higher-quality data points carry more weight in our scoring models. Full DQL methodology is available to Analyst and Principal tier subscribers.
Inside an IC Package
Each IC package contains everything your investment committee needs to make a decision.
Financial Model
Comprehensive financial projections with sensitivity analysis
Revenue Build
Detailed revenue decomposition and unit economics
Risk Assessment
Multi-dimensional risk scoring with mitigant analysis
Comp Analysis
Public and private comparable company analysis
Question Bank
Prioritized diligence questions for your team
Recommendation
Investment recommendation with conviction scoring
Calibration
We track the accuracy of Cole's projections against actual outcomes. Calibration data will be published as our track record matures.
About TrancheBook
TrancheBook is built by Praevex Ltd. Our team combines private equity operating experience with AI systems engineering to deliver research that matches institutional standards at a fraction of the time and cost.
For partnership inquiries: contact@tranchebook.com
Limitations
Cole can make mistakes. Financial projections are model outputs, not guarantees. Scores change as new data emerges. We recommend using our research as one input alongside your own due diligence process. Our analysis does not constitute investment advice.
For our compliance framework, see Trust & Compliance.