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Financial Mastery

Investor question 30 of 50 · The raise

“How much are you raising, and why that amount?”

Short answer: the investor is really asking is the round sized to a plan? Answer in three steps: (1) burn to the next milestone + 18-24 months of runway + a buffer; (2) show the calculation (Raise Planner); (3) name the milestone it reaches.

What they're really asking

Is the round sized to a plan? Investors rarely care about the question on its own. They're testing whether you know your numbers cold, whether your assumptions are honest, and whether you can explain them simply.

How to answer, step by step

  1. Burn to the next milestone + 18-24 months of runway + a buffer.
  2. Show the calculation (Raise Planner).
  3. Name the milestone it reaches.

An example answer

We're raising $1.5M. Our plan needs about $1.1M to fund 18 months while keeping a $150k cash cushion. The rest buys time for a slower Series A process.

Figures are from Loopdesk, the fictional SaaS company in our sample files. Swap in your own numbers and keep the structure.

The answer that loses trust

Avoid

"As much as we can get."

Where the proof lives

Before the meeting, find the number behind your answer. In our workbooks it lives in: Raise Planner. If you can open that tab and point to it, the follow-up question is easy.