At every stage of the funding cycle, founders must produce financial information to support the due diligence process. It’s particularly helpful to get your house in order in the early stages of your business before approaching any potential investors to avoid delays, which could raise eyebrows.
Here’s what founders should prepare for at the key early-stage funding cycles, which can be broken down into three prime areas:
1) Pre-seed – Idea
Typically, at the pre-seed stage, startups will be self-funded, raise from friends and family, or from angel investors. Some VCs invest at pre-seed, but most come on board at the seed or later stages once operational processes are up and running, and the company has a solid customer base and robust revenue. ...