Financial Strategy
Raising money, but the numbers are not investor-ready
“We are raising money and our numbers will not survive an investor's questions.”What owners tell us
The situation
Signs you are facing this
- Projections are a revenue line with no drivers
- Historic accounts and the pitch deck do not agree
- No clear answer to how much you need and why
- Due diligence requests take weeks to answer
The situation
Raising money, but the numbers are not investor-ready
Driver 1
Model built for the pitch, not the business
Assumptions cannot be defended line by line.
Driver 2
Messy history
Past accounts, share records or compliance have gaps.
Driver 3
No use-of-funds plan
The raise is not tied to milestones.
- 1
Diagnose
Clean the base
Reconcile historic accounts, cap table and compliance.
- 2
Design
Build a driver model
Three-statement projections tied to operating assumptions.
- 3
Embed
Prepare for diligence
Data room, valuation support and answers to likely questions.
- Investor-ready financial model
- Clean historical financials
- Use of funds and returns narrative
- Data room index
Common questions
What do investors look for in financial projections?
Assumptions they can test, a link between spending and growth, a clear cash runway, and history that matches what the deck says.
How is a startup valued?
Commonly through discounted cash flow, comparable transactions or a negotiated pre-money figure. Our valuation service explains the options.
Related situations
- “We are profitable, but cash is always tight.”Profitable on paper, short of cash in the bank
- “Our year has a few strong months and a long quiet stretch.”Seasonal business, steady obligations
- “Our bank limit is up for renewal and we are not sure the numbers will pass.”Bank limit renewal and covenant pressure