How to Prepare Your Financials for a Series A Investment

If you're gearing up for a Series A raise, here's the hard truth: the pitch deck might get you a meeting — but the financials will get you the money.

Investors at Series A are no longer just backing the founder’s vision or charisma. They’re looking for evidence: that your model works, that you understand your numbers, and that their capital will accelerate growth — not paper over cracks.

As Chartered Accountants supporting venture-backed businesses across the UK, we see this time and again. Great ideas fall flat when the numbers don’t hold up under scrutiny.

So, if you’re planning to raise £1M to £10M in your next round, here’s what you need to get right — before you book the first investor call.

Why Series A Is a Different Game

Series A, on the other hand, is about scalability. Investors want proof that the business model is viable, that the market is ready, and that your startup can become a scale-up — with the right capital injection.

And that means your financials must do more than exist. They must convince.

What Investors Expect at Series A

Here’s what UK venture investors are typically looking for:

• £500k–£2m annual recurring revenue (ARR), or clear traction depending on sector
• Consistent month-on-month growth, with credible customer acquisition channels
• Defined unit economics — CAC, LTV, gross margin, and payback period
• A clear use of funds, backed by realistic financial modelling
• Evidence of financial controls — governance, reporting, and compliance

In short: they want numbers that work, systems they can trust, and a founder who knows how to build a business, not just a product.

Step-by-Step: Preparing Your Financials for Series A

Here’s how to get your numbers in order before you pitch.

1. Clean Up Your Historical Financials

Investors will want to see at least 12–24 months of accounts, reconciled and reliable. That includes:

Monthly P&L and cash flow reports

• Revenue breakdowns by product, customer type, or geography
• Gross margin calculations
• Runway and burn rate analysis
• If your financials are still cobbled together in Excel or a basic cloud app, now’s the time to move to a proper system — and ideally engage a finance partner who’s supported venture rounds before.

Tip: Backdate your financial hygiene. A clean 18-month track record builds confidence in your team and systems.

2. Get Your Metrics Straight

By Series A, you must be fluent in your key metrics — and they need to be consistent across your deck, your model, and your financials.

Investors will expect to see:

Customer Acquisition Cost (CAC)

• Lifetime Value (LTV)
• Monthly Recurring Revenue (MRR/ARR)
• Churn and retention rates
• Gross margin and contribution margin
• CAC payback period
• These metrics should be calculated consistently and based on solid data — not wishful thinking.

3. Build a Solid Forecast

Your forecast is not just a formality. It’s a statement of strategy and belief — and it will be interrogated.

What makes a strong forecast?

3–5 year financial projections (monthly for the first 12–18 months)

Clearly defined assumptions for growth, hiring, pricing, and costs

Integration with your cash flow and fundraising plan

Sensitivity or downside scenarios (especially in current markets)

• Make sure your forecast tells a story — one that shows how Series A funding will translate into revenue and profitability over time.

Tip: The forecast must match your stated “use of funds” in the pitch. Investors will spot inconsistencies instantly.

4. Prepare for Due Diligence

Once you get a term sheet, things get real — and fast. Prepare in advance to avoid delays and renegotiations.

Expect due diligence to cover:

Incorporation, share capital, and cap table

• Employment contracts and option schemes
• Customer contracts and SLAs
• Financial controls, board minutes, and statutory filings
• R&D tax credit claims and VAT compliance
• Any outstanding debt, leases, or contingent liabilities
• Organise these into a virtual data room now — not after term sheets are signed.

5. Get Help from Professionals

If you don’t yet have a CFO or finance lead, hire a fractional one. At this stage, investor trust depends on your numbers being well-managed.

A qualified accountant with fundraising experience can help you:

Audit and correct historicals

• Build a clean model that investors trust
• Prepare due diligence packs
• Support investor Q&A and data requests
• Advise on valuation, dilution, and term sheet terms
• Think of it as buying speed and credibility.

Final Advice: Know What You’re Asking For

So before you pitch, ask yourself:

Is the business model scalable — and do the numbers prove it?

• Are we asking for the right amount of funding — with a clear plan behind it?

Would I invest in this business, based on this data?

• If you hesitate on any of these, hit pause and clean it up first.

Conclusion

Series A is about maturity — of your model, your team, and your reporting. Investors want to see that you’re not just chasing growth, but building a business that can handle it.

If you’re preparing to raise a round and want to make sure your financials stand up to scrutiny, we can help. From forecasting and investor decks to full due diligence support, we’ve guided dozens of businesses through successful venture raises.

Start early. Get the numbers right. And raise with confidence.