Preparing investor-ready financials
Investors want clean, consistent, and verifiable financial information. Prepare a clear package that shows historical performance and credible projections.
Documents to prepare:
- Profit & Loss (P&L) for the past 12–24 months
- Balance sheet and cash flow statement
- Cap table showing ownership and outstanding options
- Detailed forecasts with assumptions and sensitivity analysis
- Customer contracts or revenue recognition documentation
Presentation and accuracy
- Use consistent accounting methods and explain any irregular items.
- Provide supporting schedules for revenue, payroll, and major contracts.
- Be ready with explanations for churn, unusual spikes, or one-time expenses.
Practical tips
- Clean up bookkeeping errors and reconcile bank accounts before sharing.
- Provide summary metrics: CAC, LTV, gross margin, churn.
- Prepare a one-page financial summary with key takeaways.
Third-party help
Consider working with an accountant or CFO consultant to ensure numbers are audit-ready. Accurate financials speed due diligence and increase investor confidence.