This is where clarity meets confidence. You’ve built the MVP, tested it, and gathered real feedback — now prove the numbers match your narrative. Investors don’t just want hope — they want math that shows your story can scale.
“If the numbers don’t back the story, you don’t have a startup — you have a hobby.”
If your financials don’t line up, the right move may not be another raise — it may be to pivot, shrink, or walk away.
Purpose
- Establish burn rate, cash position, and true runway.
- Map short-term forecasts against past accuracy.
- Show how new funding will be used and what it unlocks.
- Build investor confidence through traction-backed proof.
When to Complete
- Once burn + runway are trackable monthly.
- Before any formal seed raise or follow-on angel round.
- As soon as forecasts are grounded in real user/revenue data (not just TAM slides).
Proof Sections
Burn Rate & Runway
- What’s your current monthly burn?
- How much cash is in the bank?
- What milestones fit within this timeline?
- B2B SaaS – “Burn: $18K/mo. Cash: $120K. Runway: 6.5 months to reach 100 paying customers and launch v2.”
- B2C CPG – “Burn: $40K/mo. Cash: $250K. Runway: 6 months; milestone = 3 new retail doors + 10K DTC customers.”
- Services – “Burn: $12K/mo. Cash: $90K. Runway: 7.5 months; milestone = 5 recurring retainers locked.”
Revenue Forecasts
- What’s your near-term MRR/ARR target?
- What assumptions drive the math?
- Have you hit prior forecasts?
- B2B SaaS – “Forecast $8K MRR by Q3 based on 12% free→paid conversion; last quarter forecast 95% accurate.”
- B2C CPG – “Forecast $100K run rate by holiday season; based on 30% reorder rate + new co-packer capacity.”
- Services – “Forecast $25K MRR within 90 days; based on pipeline of 8 warm prospects and 30% close rate.”
Use of Funds
- How much are you raising?
- Where will it go?
- What does it unlock?
- B2B SaaS – “Raising $400K to hire 2 engineers, launch paid ads, and extend runway by 9 months.”
- B2C CPG – “Raising $500K for inventory, packaging upgrade, and national distributor slotting fees.”
- Services – “Raising $250K to fund BD lead hire + tech platform to reduce manual hours.”
Investor Confidence Signals
- Who’s already committed?
- What traction supports this raise?
- What risks have you de-risked?
- B2B SaaS – “Two angels reinvested pre-raise after seeing 40% retention lift and referral engine MVP.”
- B2C CPG – “Regional grocery doubled order volume; anchor investor committed $100K of round.”
- Services – “First 3 clients renewed; advisory board expanded with Fortune 500 exec endorsement.”
Execution Requirements
- Current burn + cash balance documented.
- Runway calculation tied to milestone map.
- Forecast table (assumptions + accuracy check).
- Clear “use of funds” breakdown.
- Investor proof (commitments, reinvestments, signals).
Domain Adaptability – Universal
Universal Goal: Show you know your numbers cold and can articulate how new capital extends survival and accelerates traction.
Quick How-to by Domain:
- B2B SaaS / Software – Track burn vs. MRR; forecasts built from funnel conversion.
- B2C CPG – Model burn around inventory + retail expansion; forecasts from velocity + reorder rates.
- Services / Ops-Heavy – Burn = payroll + ops; forecasts based on utilization and client pipeline.
Expected Output
- Burn rate + runway table.
- Forecast chart (target vs. actual).
- Use-of-funds summary.
- Optional: investor pipeline snapshot.
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Optional Enhancements (Pro-Level Execution)
- 12-Month Cash Flow Forecast — Modeled by month, not just totals.
- Sensitivity Analysis — “What happens if growth is 50% slower/faster?”
- Funding Scenario Map — Plan A, Plan B, Plan C based on raise success.
- Board/Investor Update Template — Standardize reporting discipline early.
- Milestone-to-Money Correlation — Explicit linkage of spend → traction gains.