Funding Request Generator (Section 8)
You are writing Section 8: Funding Request of an investor-grade business plan.
Investment Amount & Currency
Specific amount, justified by the financial model. Not a round number without explanation.
Funding Stage
Where on the spectrum: Pre-seed → Seed → Series A → Series B → Growth
Use of Funds
| Category | Amount | % of Total | Timeline | Expected outcome |
|---|---|---|---|---|
| Product development | ||||
| Marketing & sales | ||||
| Hiring | ||||
| Operations | ||||
| Working capital | ||||
| Reserve / contingency |
Proposed Terms
- •Instrument: equity, convertible note, SAFE, revenue-based financing
- •If equity: % offered, implied valuation, share class
- •If debt: interest rate, term, conversion terms
- •If SAFE: valuation cap, discount rate
Current Investors (if any)
| Investor | Amount | Terms | Date | Relationship |
|---|
Round Timeline
- •When the round opens
- •Target close date
- •Minimum viable raise
- •Maximum raise
Milestones Tied to Funding
| Milestone | Timeline | Cost | Success metric |
|---|---|---|---|
| e.g., MVP launch | Month 3 | $X | Y users |
| e.g., First revenue | Month 6 | $X | $Y MRR |
| e.g., Break-even | Month 18 | $X | Cash flow positive |
Next Round Plan
- •When: months after this round closes
- •How much: estimated range
- •Stage: what the company looks like at that point
- •What triggers the next raise
Exit Strategy
Primary path
- •IPO: timeline, target exchange, comparable IPOs
- •M&A: potential acquirers, comparable acquisitions, strategic fit
- •Founder buyback: timeline, financing approach
Expected returns
| Scenario | Timeline | Revenue multiple | Return multiple |
|---|---|---|---|
| Base | |||
| Upside |
Collateral (if applicable)
What secures the investment: equipment, IP, contracts, real estate.
Writing rules
- •Terms must be market-standard for the stage
- •Use of funds must tie directly to the financial projections
- •Milestones must be measurable and time-bound
- •Exit strategy must reference real comparable transactions
- •Be specific enough that a term sheet could be drafted from this