Preparation checklist
What investors ask forbefore they invest.
Whether you are raising from angels or a venture fund, selling a stake or selling the whole business, the first serious conversation ends with the same request: send the numbers. Here is what to have ready, and how to share it on your terms.
The checklist
Eight things to have ready
Before you find investors or a buyer, put these together. Most of them come from one model, so keep them in one place.
- The periods. Which months and years the figures cover, and when the books were last closed. Monthly figures for recent periods and annual totals for earlier years are common.
- The three statements. An income statement, a cash flow statement and a balance sheet that agree with each other, month by month. How the statements link.
- Actual against forecast. Which months are real results and which are the plan, and how recent months compared with what you expected.
- Cash and runway. Cash in the bank, monthly burn and how long the money lasts on the current plan. The burn rate calculator for a quick check.
- The assumptions. The drivers behind the forecast (customers, pricing, hiring and costs) and what has to be true for the plan to hold. How a driver-based model works.
- The ask. How much you are raising or what you are selling, the instrument or structure, the terms you propose and what the money is for.
- Ownership. A cap table on a fully diluted basis: founders, the option pool, SAFEs and notes, and what the deal does to each holder. Cap table and raise plan.
- Supporting records. Bank statements, the accounts the figures came from, tax filings and material contracts, ready for when diligence starts.
By situation
Raising, selling a stake or selling the business
The list stays the same. What gets the most attention changes with what you are asking for.
- Raising from angels or a venture fund. The plan and its assumptions, runway before and after the round, the use of funds and what the round does to ownership.
- Selling a stake. The track record, how much cash the business generates, and how the price for the stake was worked out.
- Selling the whole business. Several years of actual results, profit with one-off items explained, working capital, and the records a buyer's advisers will check.
This is a general guide, not legal, tax or investment advice. Your accountant and lawyer know your situation; involve them early.
In Replafin
Prepare it once, then share it on your terms
Replafin turns your books into most of the list above. Your Data keeps the real figures with their sources; the statements, the forecast, cash and runway come from one model whose balance sheet balances in every month; the valuation page compares methods from the same plan. When you are raising, Raise sizes the round and keeps a before-you-pitch checklist, and Cap Table shows ownership through each round.
When you are ready, the Investor Access page publishes a dated version of your figures and invites the investors you choose by email. Recorded figures always go in, each month with its source; the forecast, the valuation and the cap table only if you switch them on; your ask if you set one. Investors agree to confidentiality terms before they view, you see who viewed which version, and you can revoke access at any time.
Questions
Preparing for investors, answered
What do investors ask for before they invest?
Usually the same short list: the periods the figures cover, an income statement, cash flow statement and balance sheet that agree with each other, actual results against the forecast, cash and runway, the assumptions behind the plan, the ask, the ownership table and the records behind the figures. The checklist on this page goes through each one.
How do I find investors for my business?
Start with people who already know you or your market: other founders and owners, your customers, your accountant or lawyer, angel groups and accelerator networks. For a business sale, buyers often come from your industry or through an adviser. Every route turns to the numbers quickly, so have them ready before the first conversation.
What do investors look for in the financials?
Evidence that fits the stage and the situation. Early on, a credible plan and a cap table in order; with revenue, growth, margins and a burn rate that buys enough time; for a stake or a sale, a track record of profit and cash. In every case, where the figures came from: the bank and the books, or the plan.
How much should I raise?
Enough to reach the milestone that unlocks the next round with a margin of safety, commonly 18 to 24 months of runway at the burn the plan implies. The raise plan in Replafin sizes it from the model: the burn, the milestone month, the buffer, and the dilution at a target valuation.
Do I need a financial model before talking to investors?
At any stage where money is involved, yes. It does not need to be big; it needs to be consistent. A revenue build, a P&L, a cash flow forecast and a balance sheet that balances, plus a cap table and the use of funds, answer most of the first meeting's questions and make the second one about the business.
How do I share my figures with investors in Replafin?
From the Investor Access page in your workspace. Publish a dated version of your figures, choose whether it includes the forecast, the valuation and the cap table, and invite investors by email. They agree to confidentiality terms before viewing, you see who viewed which version, and you can revoke access at any time. Investor Access is part of Pro, and the investors you invite view free.
