• Before the CPA community declares me a persona non grata let me express that I have the greatest respect for what accountants and bookkeepers do every day. We need them now more than ever as it looks like regulation is only going to get worse before it gets better. That said, if you plan on raising capital and achieving world domination with your startup, you need a strategic CFO on your side, not an accountant. Allow me to briefly explain the two fundamentally different types of finance professionals. On the one hand, you have the before mentioned accountants, tax preparers, bookkeepers and controllers. Let’s call these Type 1 finance professionals. On the other hand, you have the strategic finance professional who is versed in fundraising, M&A, investment banking, etc. Let’s ca

  • I’ve been approached many times by founders with their business plans asking me for introductions to other venture capitalists. In most cases I had to say no because the pitch materials were below standard or incomplete. So what does a complete information package for fundraising look like? Obviously, every company and situation is different. A seed stage company that has no revenues or product yet requires a lot less due diligence than one that is raising a Series B round. However, here are the six things every company should have in some form or fashion before approaching investors: 1. Financial Forecasts Yes, I know, no one can predict the future, but you do need a five year forecast model with at least the first 24 months on a monthly basis. This forecast needs to be bottom-up. It

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