Raising funding is one of the biggest and most exciting steps a startup or growing business can take, but it’s also one of the most daunting. Whether you’re launching a new venture or looking to scale an existing one, securing investment requires more than a great idea. You need a clear strategy, robust financials, and a compelling story that gives investors confidence.
As a Fractional CFO working with UK-based founders and SMEs, I’ve supported startups across various stages, from seed funding through to multi-million-pound exits. In this guide, I’ll walk you through what it really takes to raise funding, and how working with a CFO can make all the difference.
Why Businesses Raise Funding
There are many reasons founders seek funding, including:
- Building a product or platform
- Investing in stock or equipment
- Hiring key team members
- Expanding into new markets
- Accelerating delivery or growth plans
But regardless of your goals, investors will want to know one thing: how will this money turn into value? Whether you’re speaking to angel investors, venture capital firms, or looking at grant funding, the principle is the same. They are investing in your ability to deliver a return.
What Investors Want to See
Having access to investors is one thing, but convincing them to invest is another. Here’s what most investors expect to see before they’ll take you seriously:
1. A clear and scalable business model
Can you show how your business generates revenue, and how that revenue will grow over time? If your model relies heavily on the founder or lacks repeatability or margin, that can be a red flag.
2. Evidence of traction
Have you got early customers, letters of intent, or pilot projects underway? Even in pre-revenue businesses, proof of concept or market interest can go a long way.
3. Robust financial forecasts
Investors don’t expect perfection, but they do expect visibility. Your forecasts should show a strong understanding of your costs, pricing, margins, and cash flow. They want to see how far their money will go, and when you might need more.
4. A compelling pitch deck
This is more than just a presentation. Your pitch deck should clearly tell the story of your business, the problem you’re solving, your solution, the market opportunity, your team, the numbers, and exactly what you’re asking for.
5. A clear use of funds
Investors want to see that you’re not just raising money for the sake of it. They want to know what the funds will be used for, whether that’s hiring, marketing, R&D, or delivery. Break it down and be realistic.
The CFO’s Role in Raising Funding
Founders are the visionaries behind the business, but investors want to know there’s someone keeping an eye on the numbers. That’s where a CFO comes in.
As a Fractional CFO, my role is to:
- Build or review your financial model so it aligns with your growth strategy and makes sense to investors
- Stress-test your assumptions to ensure your plan is realistic and defendable
- Help prepare or refine your investor pack, including your pitch deck and supporting financials
- Support your valuation approach and help you justify it with real data
- Act as a sounding board and strategic partner during pitch prep or investor Q&A sessions
My job is to help you present your business as a credible, investable opportunity, one that stands up to scrutiny and inspires confidence.
Top Tips to Get Investor Ready
Here are some practical tips for founders preparing to raise investment:
Start early
Fundraising always takes longer than expected. Leave time to get your materials right, hold conversations, and respond to investor feedback.
Keep it simple
Investors don’t want jargon. They want clarity. Make sure your business model, pitch and financials are easy to understand.
Know your runway
Be clear on how long your current cash will last, and what your funding timeline looks like. This helps show urgency without panic.
Expect tough questions
Investors will challenge your assumptions. Be ready to explain how you’ve arrived at your numbers, and what happens if things don’t go exactly to plan.
Don’t overpromise
Optimism is great, but over-inflated forecasts or vague assumptions will undermine trust. Ground your plans in reality.
Need Help Getting Investor Ready?
If you’re a founder or business owner preparing to raise funding, you don’t have to go it alone.
I work with startups and growing businesses on a fractional or project basis, offering practical and strategic CFO support to help you:
- Understand your financial position and funding requirements
- Build a strong and credible investor proposition
- Present your business clearly and confidently to funders
- Secure the investment you need to grow
If you’d like to talk through your plans or get a second opinion on your investor pack, feel free to get in touch for a no-pressure chat.
