Saying you are raising £500,000 tells an investor how much you want. It does not tell them whether that is the right amount. They want to know how the money will be used, how long it will last and what you will have proved by the time you need more.
I’ve screened more than 30 pitches for Keiretsu Forum London. Founders who know their business inside out and can explain what they will do with the funding they are asking for usually do better than those who cannot.
Start with the milestone
Decide what the money needs to achieve. It might be finishing the technical testing, landing your first paying customers, hiring the key people or showing that sales can be repeated. Then explain why reaching that point puts you in a stronger position for the next round.
Show where the money goes
Group the spending under a few clear headings, such as product, people and sales, and say why each one matters. Do not put a line-by-line budget in a short pitch. Keep the detail ready for when investors ask for it.
Say how long it lasts
Tell investors how many months the money will last and what you expect to have achieved by then. If the milestone takes longer than the money lasts, they will notice.
Be open about your assumptions
How much time and money will the work take? What could delay it? Which costs are fixed, and which can change? Investors are not looking for perfect answers. They want to see that you have thought it through.
Link the spending to proof
Every pound you ask for should connect to a result an investor can check later. Your numbers should also match your forecast, your business model and the rest of your pitch. If the ask says one thing and the forecast says another, investors will question both.
Check your funding ask
- How much are you raising?
- What will the money achieve?
- How many months will it last?
- What will you have proved by the end?
- Could an investor check it later?
Not sure your ask makes the case?
Send me your pitch deck along with a short summary. I’ll tell you whether the amount, the plan and the milestones add up.