How to Write the Funding Request Section
Be specific about what you're raising, how you'll use it, and what milestones you'll achieve. Ambiguity kills deals.
The funding request section answers three critical questions: How much money do you need? What exactly will you do with it? What will investors get in return? This section should be crystal clear and directly tied to your financial projections.
The Funding Ask: Be Specific
Example: Clear Funding Request
We are raising $2,000,000 in Series Seed funding at a $10M pre-money valuation. This represents 20% equity dilution and will provide an 18-month runway to reach $150K in monthly recurring revenue and position us for a Series A raise.
Structure:
- • $1.5M SAFE notes (YC standard terms, $10M cap)
- • $500K from strategic angels with industry expertise
- • Minimum check size: $25K
✓ Good Funding Asks
- • Specific dollar amount
- • Clear valuation/terms
- • Defined runway period
- • Tied to measurable milestones
✗ Bad Funding Asks
- • "We're raising $500K-$2M" (too vague)
- • "Looking for strategic partners" (not specific)
- • No mention of terms or valuation
- • "We'll know we need more after this round"
Use of Funds Breakdown
Show exactly where every dollar will go. Investors want to see you've thought this through:
$2M Allocation Example
Product Development
5 engineers, 1 product manager, infrastructure costs
Sales & Marketing
3 AEs, 2 SDRs, paid acquisition ($200K ad spend)
Operations & Admin
Office space, legal, accounting, HR, insurance
Pro Tip: Link to Your Financial Model
Reference specific line items in your financial projections. "Our use of funds breakdown directly corresponds to our Year 1 hiring plan (Section 8.2) and our go-to-market strategy (Section 6)."
Milestones You'll Achieve
Investors are buying milestones, not just runway. Show what you'll accomplish with this capital:
Product-Market Fit Validation
Launch MVP with 3 core features, onboard 50 beta customers, achieve 40% weekly retention
Revenue Traction
$75K MRR, 200 paying customers, <5% monthly churn, NPS above 50
Series A Ready
$150K MRR ($1.8M ARR), 500+ customers, repeatable sales playbook, unit economics validated (LTV:CAC > 3:1)
What Investors Get in Return
Investor Returns Scenario
Current Investment
$100K
at $10M pre-money
Ownership
1.67%
fully diluted
Exit Scenario ($150M)
$2.5M
25x return in 5 years
Exit Path: Based on comparable SaaS exits in our category (avg 8x ARR), reaching $18M ARR by Year 5 would support a $150M+ exit via acquisition or IPO.
Future Funding Rounds
Investors want to know if this is your only raise or part of a larger financing strategy:
| Round | Amount | Timing | Key Milestone to Unlock |
|---|---|---|---|
| Seed (Current) | $2M | Q2 2025 | MVP + Product-Market Fit |
| Series A | $8M | Q4 2026 | $1.8M ARR, repeatable GTM |
| Series B | $25M | 2028 | $10M ARR, market leadership |
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