When you're raising funds, it's natural to focus on the pitch, the product, and the size of the opportunity. But investors don't just back ideas — they back businesses. A compelling vision might get their attention, but it's the financials that build real confidence.

Preparing investor-ready financials isn’t about creating spreadsheets for the sake of it. It’s about showing that you understand how your business works, where it’s going, and how capital will accelerate its trajectory. Here’s how to get it right.

What financial documents do investors expect?

Whether you're raising £100K or £5 million, most investors expect a core set of financial documents. Typically, that includes:

• Profit and loss (P&L) statement

• Balance sheet

• Cash flow forecast

• Revenue projections

• Break-even analysis

These aren’t just due diligence items. They’re signals of maturity, clarity, and accountability.

Each document serves a specific purpose. The P&L shows how your business has performed over time. The balance sheet reveals how you're managing assets and liabilities. The cash flow forecast helps investors understand your runway. And revenue projections? That’s your opportunity to show ambition backed by evidence.

How to build a credible financial forecast

A strong forecast doesn’t just throw out big numbers. It should clearly reflect your business strategy and be tied to tangible milestones — like launching an MVP, hitting a revenue goal, expanding into a new market, or making key hires.

A useful forecast shows:

• Where you are today (your current financial position)

• What you're aiming to achieve (clear milestones)

• How much capital is needed to get there (the “ask”)

• How you’ll allocate the funds (e.g. hiring, marketing, product development)

• When you expect to break even or hit revenue targets

As a rule of thumb, cover at least 18 to 24 months and show both base-case and downside scenarios. Don’t be tempted to inflate numbers. Experienced investors can quickly spot unrealistic assumptions.

Show you're grounded, not just ambitious

The goal isn’t to impress with size. It’s to build trust by showing you’re thoughtful and transparent. That means:

• Explaining the assumptions behind your numbers (e.g. customer acquisition cost, churn, conversion rate)

• Showing unit economics that improve as you scale (e.g. LTV to CAC ratio)

• Demonstrating how costs behave over time

It also means owning your financials. If you’ve outsourced the work and can’t explain what’s in the forecast, investors will pick up on it — fast.

Get the basics right first

Before you worry about flashy models or pitch decks, focus on the essentials:

• Clean, up-to-date financial statements (ideally reviewed by an accountant)

• A clear cap table (showing equity distribution and future dilution risk)

• Accurate tax records and any outstanding liabilities

• A list of contracts and commitments (leases, loans, deferred payments)

Simple and well-organised beats complex and confusing every time.

Link the numbers to the story

Investors read numbers, but they buy into stories. Your financials should support your narrative and show how product, market, and team come together into a credible, fundable plan.

Here’s a quick example:

You're building a SaaS platform. You’ve signed up 150 paying customers. Your projections show revenue tripling in 12 months, driven by new hires and paid acquisition. You’re raising £500K to fund the next stage: £200K for sales hires, £150K for product improvements, and £150K for marketing. You expect to reach £40K MRR and break even within 18 months.

That’s not just numbers. It’s a roadmap showing how investment drives momentum.

Investor-ready financials don’t need to be perfect. But they do need to be clear, credible, and aligned with your strategy. Strong numbers won’t guarantee funding, but messy or unrealistic ones almost always guarantee a pass.

Know your numbers. Own your strategy. Prove you can be trusted with someone else’s capital.