Investor Readiness: What Gets Checked Before a Term Sheet

Readiness is a documentation discipline

Before capital discussions, the business should be able to produce a consistent set of information on request, without a scramble.

The core pack

• Business overview and problem statement.
• Market sizing with stated assumptions.
• Unit economics and contribution margin.
• Monthly financial model with three scenarios.
• Capital requirement and intended use of funds.
• Cap table, incorporation documents and compliance status.
• Customer evidence: contracts, pipeline or usage data.

Use of funds is the deciding slide

A capital requirement without a use-of-funds breakdown reads as a wish. Split the requirement into product, team, market development and working capital, and connect each to a measurable milestone.

Important

Preparation improves the quality of a conversation. It does not guarantee investment. Outcomes depend on due diligence, market conditions and investor decisions.