“We all know that you should be running your business as if you could pass a diligence round by the next day, but let’s be honest, that is really difficult. The day-to-day activities, the urgency of growth, and the need to be efficient and lean, cause a tremendous amount of tension between priorities. The balance between moving fast and lean vs. doing everything by the book is really difficult to find.”

Jorge Lluch - Co-Founder of Abacum and Former CFO

This is the first in our series of articles on raising money for a scaling company from a CFO perspective. It comes on the back of our own third successful raise.

We begin with what to do before you actually start raising capital, because once you do, the process will be intense. For a CFO, raising money can be both the best of times and the worst of times. On the one hand, the excitement of new investors and new money to guide the company through the crashing seas of the open market is intoxicating. On the other hand, potential investors pore over your numbers looking for any misalignment. You are responsible for connecting the right numbers to the vision pitched by the CEO.

So, before you even start raising, make sure the story for why you are raising, its structure and timing, and your internal alignment are locked across the company, so you can find the right investors for your company. This should always be done by Finance and, no, AI will not solve this for you.

Let’s get to work.

1. Define Fundraising and Why

First things first: why do you want to raise money? Expansion, go-to-market, a new product… ego? Assuming that everyone else knows the “when” and “why” is a mistake. Make sure to clarify:

• What is triggered on funding. What will you do with the money? Expand into a new territory, build something, or double down on what you are already doing. Make it clear to both the management team and the company at large how the money will translate into tangible outcomes.

• Milestones and timing. What metrics must the company hit to raise money well and by when. Explain why these metrics matter. They foretell a level of profitability that will attract investors and increase the probability of achieving your company’s vision.

• Amounts. Within the management team, be crystal clear on how much you want to raise. Valuation is secondary. By focusing on the amount, you will inspire dreams of what people can do with the extra resources… not the paper wealth.

• Runway end date. Cash is king. Be clear when you would start to be in real trouble if you don’t raise money. We will talk later about scenarios if these downsides come to pass.

Ideally this communication starts right after the last round; it reinforces everything you do around strategy, metrics, cash flow, and expansion. If it hasn’t, communicate now. Dedicate at least some town-hall time to this concept as it’s key part of being involved in a scaling company.

Tip: You are raising to achieve a business outcome. It’s your role as a CFO to ensure you are raising for the right reasons and have the team to use it effectively.

2. Set Up the Funding Structure and Timing

Build your timeline and share it. In this example, T is six months before you exhaust runway, so T – 6 is 12 months before runway ends:

Share this with the CEO and executive team so everyone knows where they may need to jump in. Transparency reduces uncertainty.

Tip: Note that your key metrics 2 quarters before taking funds are critically important as they determine your valuation, leverage, etc.

3. Ensure Your Internal Story is Consistent

We have talked a lot about the story-telling that a CFO should lead to keep a company moving in lockstep. Unsurprisingly, alignment is critical in a funding round. The last thing you need is one executive telling investors they are chasing “product-market fit,” another director insisting they are “scaling marketing,” and a third manager claiming “the product needs work.” Before starting the round process, re-present and discuss with the team:

• Who we are. What is our culture, why did the company start, and what is our special edge?

• What problem we are solving. State the customer pain in plain words. Yes, there might be many, but pick one headline issue everyone can recite.

• Where we are going (TAM). What is the big vision and how large, in realistic terms, is the market? How many buyers feel the pain you solve?

• Risks and rewards. Spell out the key risks and the upside of choosing our path. Be honest. Mastery starts with clear-eyed realism.

Ideally this story lives in the DNA of the company. If not, turn up the volume the moment a raise is on the horizon.

Tip: Investors will ask your execs and your employees about their vision of the company. Make sure your investors receive a consistent answer.

4. Know Your Value

You should always have a rough sense of what the company is worth. Walking into a raise clueless drains leverage and signals unprofessionalism to your investors. So, make sure you know backwards and forwards:

• Your metrics. Track the KPIs your sector cares about and know how you stack up. This should include the trends over the last several years and how your KPIs have developed over time.

• Know other company raises. Keep a running list of recent financings and exits: who, how much, and at what scale.

• Know best-in-class ranges. VC blogs, data platforms, and banker decks publish benchmarks all the time. Compare them to your own and be ready to field detailed questions of why individual metrics are better or worse than best in class.

• Set a valuation range. Compare your revenue and metrics to equivalent deals, then decrease or add an amount based on intangibles. This should give you a range of confidence to evaluate any offer or respond to any specific questions.

If you know the band of value before investors weigh in, the conversation shifts to “yes or no” instead of a debate over value.

5. Identify the Right Type of Investor

By clearly defining your story and how you intend to use the capital, you can pinpoint what kind of investors are right for you. This is a long-term relationship, often 7–10 years, so it’s critical to know exactly what you want from anyone joining the cap table. Here are some criteria you should assess:

• Strategic vs. hands-off. Are you just looking for funding with minimal involvement, or do you want an investor in the boardroom giving hands-on advice? Both have their place, but they lead to very different working dynamics.

• Geography. Will your raise be local or international? If you’re aiming to expand globally, especially into the U.S.,you’ll likely target American investors. That comes with different expectations. Investors are naturally drawn to markets they understand, so make sure their interests align with your expansion plans.

• Company vs. VC vs. Individuals vs. Corporate VC. Are you targeting strategic corporate investors, institutional VCs, or experienced angels? Each has different expectations and dreams with their investment.

• Contacts and Access. How important is it that your investors can open doors? Will you need them to connect you to customers, partners, or future hires? Evaluate how deep their networks go in your space.

• Money vs. Reputation. Big-name investors often push for lower valuations because their brand boosts your profile and helps with future rounds. Sometimes this reputation premium is worth it but not always. Decide what matters more: cash now or credibility for later.

• Round Construction and Governance. Typical setup: 1 lead investor (taking 40–60% of the round), 1–2 follow-ons, and insider pro-rata rights. Consider keeping one board seat for the lead, one for a prior lead, and one independent director.

You should build a profile of your ideal investor before you start outreach. This doesn’t have to mean chasing the biggest names. Instead, look for the people who will actively support you for the next decade.

Tip: Be clear with potential investors on what you are looking for. This avoids a lot of wasted conversations. They will appreciate the transparency.

6. Know Your Internal Investors

Even if they can write a check, it doesn’t mean they will. Some investors simply don’t have follow-on capacity, others might be waiting to see who else comes in before committing. Silence or uncertainty here can send the wrong message to new investors, so it’s critical to get alignment early. Things to consider:

• Reach out internally early. Approach your existing investors 2-3 months before you plan to start broad outreach to new investors to get their mood, use their contacts, and ensure alignment.

• Explain your current investor’s sentiment. New investors will look at insiders’ behavior as a validation check. If your existing investors aren’t backing the next phase, be prepared to explain why.

• Capacity and fit. Some funds are too small to keep participating, even if they want to. Others might feel they’ve fulfilled their role. Understanding their fund size, reserve strategy, and priorities can help you forecast the round more accurately.

• Straighten the board dynamics. If any internal investors have board seats, make sure they’re aligned with your strategy for the raise. Disagreement at this level can create tension that derails momentum with new leads.

These investors will be your key cheerleaders during the process. They can also scare away potential investors if there is not a key reason they will not be continuing on in the process.

Tip: Don’t assume pro-rata participation. Ask directly. A clear “yes” gives you momentum. A “no” doesn’t doom the round, but it means you’ll need a stronger external narrative.

7. Use Your Network as a CFO

Sure, your CEO may have more connections from previous rounds or maintain a higher profile, but that doesn’t mean you should sit back once the process starts. As CFO, your own network can be an underutilized asset both as potential investors or as sounding boards. Make sure you are:

• Tapping into your peer group. Reach out to other CFOs. Ask who they’ve raised from, what value those investors brought, and if they’d be open to making an intro. Even a 15-minute call can open doors or prove fruitful.

• Leverage personal networks. Think beyond your day job. Old school friends, former colleagues, even friends-of-friends. You’re not asking for money; you’re asking for a conversation that most people will find interesting.

• Do research. You already know the type of investor you’re targeting. Now dig in. What have they invested in lately? Do they have a thesis that fits your company? Are they founder-friendly? The more context you have and can provide the CEO, the more value you provide.

Even if none of these contacts lead to a term sheet, they’re invaluable for pressure-testing your numbers. Informal chats often surface the tough questions before you’re in the hot seat. Use that feedback to tighten your story and plug any gaps.

In Conclusion

Clarity is your competitive advantage. Know what you want, why you want it, and who you want beside you for the journey. Then start rehearsing. Use your network to pressure-test the story, sharpen your numbers, and build momentum before the formal process kicks off.

We’ll dive into diligence prep next, but these are the fundamentals that separate a strategic CFO from a run-of-the-mill numbers guy.