August is a noticeably quieter time, with investors clocking off for a Summer break. With far less fundraising activity and pitching, it is the perfect time for startups to get their house in order and prepare for the bustling autumn fundraising season.

After all, a strong business foundation is just as crucial as a compelling pitch when seeking investment. In today’s climate investors are questioning how sustainable businesses are and probing how firm the foundations truly are. So it is a perfect time to ensure the often overlooked essentials are taken care of. As one of the world’s most successful football managers Alex Ferguson once put it: “Fail to prepare and prepare to fail.” 

Drawing on insights from industry experts we have spoken to over the past few months, here are six top tips to help you prepare your startup for fundraising success, ensuring you’re ahead of the game when investors log on again. 

1. Financial storytelling

Securing investment goes beyond just presenting numbers; it’s about making those numbers tell a compelling narrative. According to Charlie Robinson of ScaleUp Finance, it’s not enough to simply have strong financials; you must be able to articulate the story behind them. “A pitch deck alone isn’t enough,” he says, “You must create a robust financial model to tell the story of the business.” This involves understanding your unit economics, projected growth, and how investor funds will accelerate your trajectory. 

A well-crafted financial story demonstrates your understanding of your business’s past, present, and future potential, building trust and confidence with potential investors.

2. Strategic sales execution

Even if you aren’t a natural salesperson, adopting a disciplined and strategic approach to sales is vital for growth, especially in B2B environments. In today’s climate investors are looking for real traction signals, like revenue growth. A good sales strategy can really deliver on this front.

Charles Talbot, Co-Founder of Closing Foundry, advises founders to see sales not just as closing deals but as a strategic process. “Sales is the ‘helping’ profession,” he says, encouraging founders to focus on understanding a buyer’s problem and offering solutions, rather than merely listing product features.

Implementing a structured sales process helps manage complex deals, engages multiple stakeholders effectively, and accelerates the sales cycle, preventing stalled opportunities and building long-term customer relationships.

3. Financial modelling and cashflow strategies

Poor cashflow management is a silent killer for many promising startups. Peter Denton from Lothbury Business Management highlights the critical importance of proactive financial planning, noting that “the single largest factor in the failure of small businesses – up to 80% of all cases – is poor cashflow management.”

A robust financial model is essential for forecasting, determining business value, and securing fundraising. It also aids in vital decision-making, risk management, and strategic allocation of resources and capital. Understanding your cash inflows and outflows allows you to make informed decisions that support sustainable growth and avoid liquidity crises.

4. The Power of a strong cap table

Your company’s capitalisation (cap) table, a visual representation of ownership, is a critical component that investors will scrutinise. Guy Kaufman, Startup Lead at Vestd, emphasises the need for meticulous management and transparency. He advises, “Avoid using spreadsheets and make sure you use a dedicated digital tool for your cap table.”

Manual methods are prone to errors and can deter investors. A clean, accurate, and digitally managed cap table ensures clarity on equity distribution, vesting schedules, and potential dilutions, demonstrating professionalism and preparedness to potential investors while avoiding issues like “dead equity.”

5. Strong shareholder and founder agreements

A solid legal foundation, particularly robust shareholder and founder agreements, protects all parties involved and signals professionalism to investors. Helen Goldberg from Legal Edge advises, “While a basic shareholder agreement is not mandatory, the consequences of not having a more detailed and sophisticated one can be devastating for your business and its founders.”

These agreements define roles, responsibilities, decision-making processes, intellectual property ownership, and exit strategies. Putting these in place early on prevents future disputes, provides clarity for all stakeholders, and demonstrates a mature approach to governance that instills confidence in investors.

6. Reverse-engineering your pitch deck

Your pitch deck is your gateway to securing funding, but the story you tell is far more important than flashy design. Malcolm Lewis, a pitch deck coach, wisely advises, “Your pitch matters more than the deck.” He advocates for a “reverse-engineering” approach, starting with what investors are looking for.

He recommends creating two versions of your deck: a more detailed “send-ahead” version for preliminary review, designed to secure a meeting, and a more concise, visual “presentation” deck for the actual meeting. This dual strategy ensures that you provide enough information when you’re not present, and then focus on engaging conversation and key messages when you are.

Spend this time to get the essentials right and you can go into the competitive autumn period confident under any scrutiny from investors. Good luck!

Are you looking for an angel investor to help fund your business? Join us at Angel Investment Network, where global investors meet the great businesses of tomorrow.

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