A fund’s sector tags record what each company sells. Renewals depend on who pays and from which line of the customer’s budget, so two companies filed under different sectors can share a funding risk.
Take a hypothetical pair. Company A sells tutoring software to public school districts and sits in the fund’s tracker as edtech. Company B sells bus-routing software to districts and would sit under logistics. The fund holds A and is weighing a first check into B, and the two companies look unrelated: different competitors, different roadmaps. Now suppose that in most contracts at both companies, the purchase order charges the same state grant, and the grant ends with the same fiscal year. Both companies would need the districts to find replacement funding for those renewals in the same budget cycle. The tracker would still show two sectors.
A founder may know the buyer’s title without knowing the account code on the purchase order, so I would ask for the purchase orders. For each company’s largest contracts, the diligence record should name the budget line that pays the invoice and when that funding next needs approval or expires. For B alone, that record describes renewal risk. Set beside the same record for A, it shows whether the next check would add exposure to the same expiring grant.