Investor question 9 of 50 · Revenue & growth
“Why will growth accelerate after this round?”
Short answer: the investor is really asking what does the money change? Answer in three steps: (1) link specific spending to specific growth drivers; (2) show the leading indicator you'll watch; (3) admit what must be true for it to work.
What they're really asking
What does the money change? 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
- Link specific spending to specific growth drivers.
- Show the leading indicator you'll watch.
- Admit what must be true for it to work.
An example answer
Paid marketing rises from $8k to $25k a month in year 2 and we add a Head of Sales. If CAC stays below $2,800, new customers roughly triple.
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
"More money means more growth" with no mechanism.
Where the proof lives
Before the meeting, find the number behind your answer. In our workbooks it lives in: Assumptions, Raise Planner - Milestones. If you can open that tab and point to it, the follow-up question is easy.