A workflow in 5 steps
Preparing for Fundraising — 5 Numbers Investors Will Ask
Investors will probe five numbers within the first 10 minutes. If you cannot answer these confidently, you are not ready to raise. This workflow prepares you.
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Step 1: Know your valuation range
Investors will have their own valuation opinion. You need yours. Revenue multiples, SDE, and EBITDA methods give you a defensible range to anchor negotiations.
Benchmark: Private SaaS: 4-12x revenue depending on growth.
Open the Business Valuation Calculator -
Step 2: Show your runway math
Investors want to know: how long can you operate at current burn? What runway does their investment buy? Model with and without the raise.
Open the Startup Runway Calculator -
Step 3: Prove unit economics work
LTV:CAC and payback period are the first metrics growth-stage investors examine. If unit economics are not positive, most investors will pass regardless of revenue growth.
Benchmark: Healthy LTV:CAC is 3:1+, payback under 18 months.
Open the Unit Economics Calculator -
Step 4: Project your growth trajectory
Investors model their returns from your growth rate. Show MRR/ARR projections at 3, 6, and 12 months with Net Revenue Retention to prove retention strength.
Open the MRR / ARR Growth Calculator -
Step 5: Demonstrate capital efficiency
CAC payback speed shows how efficiently you convert investment into recurring revenue. Faster payback means less capital needed per unit of growth.
Open the CAC Payback Period Calculator
Questions people ask
What valuation should I ask for?
Use the calculator to find your range, then aim for the top quartile. Be prepared to justify with metrics. Overpricing kills rounds; underpricing dilutes unnecessarily.
How much runway should I have before raising?
Open investor conversations at 12-18 months of runway. Be actively raising by 9 months. Six months is the hard floor — below that, you are negotiating from weakness.
What if my unit economics are not positive yet?
Early-stage investors expect this for pre-seed/seed. But you need a credible path to positive unit economics. Show the trend and the levers you are pulling.
Part of Bootstrapped growth: See when cash runs out, what you need to break even, and how to grow without funding.