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What Makes a Good Deal-Flow Signal? — FAQ

Not all signals are created equal. Here's what separates a useful deal-flow signal from noise — and why GitHub engineering activity is one of the strongest leading indicators available.

What makes a signal good for deal flow?

Three criteria: 1) It's a LEADING indicator (predicts before events happen). 2) It's OBJECTIVE (not self-reported). 3) It's TIMELY (refreshed at least weekly). GitHub engineering activity scores high on all three.

Why is GitHub activity better than Crunchbase data?

Crunchbase data is self-reported (founders or PR firms submit it) and lagging (rounds appear after they close). GitHub data is objective (code doesn't lie) and leading (acceleration happens before the raise).

What about hiring data as a signal?

Hiring is a good secondary signal. But it lags behind code — a startup ships for months before it hires a PR person. GitHub is the earliest signal; hiring confirms the momentum.

What's the worst deal-flow signal?

Press mentions. By the time a startup is in TechCrunch or Forbes, the round is usually closed. It's not a signal — it's a confirmation of what already happened.

How often should I check signals?

Weekly. GitHub is noisy at the daily level (weekend commit dips, sprint-cycle patterns). Weekly aggregation smooths the noise and reveals real trends.

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