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9 Do's and Don'ts of Raising Capital

A fractional CFO's playbook for forecasting, framing your numbers as a story and avoiding common pre-raise mistakes

Ben Murray · SaaSCFO

Published September 1, 2022
About this resource

Ben Murray has been a fractional CFO for 10s of top SaaS companies

In 20 minutes, he shares:

- The playbook he uses to help founders forecast their financials and raise millions

- 3 tactics on how to craft your numbers into a powerful story

- Most common mistakes founders make before they raise funds

Explore the lesson. Sign in to access the slide download.

What you’ll learn

Ben Murray explains how SaaS founders can make fundraising more credible through financial metrics, realistic forecasting, planned investment milestones, and disciplined due diligence.

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Key moments

Find the ideas you need and go straight to the source.

Fundraising preparation

“founders what's going on you guys know i love in-person events and they are back the recording you're about to hear is from our most recent event where we had hundreds of founders come together share intimate details templates kpis okrs about their business and it was something special something special we'd love to meet you in person if you want to see the next live events we have coming up via our schedule the link will be down below in the description if you're listening on itunes check this out on youtube you'll see the links in the description or you can just google”
Watch at 00:00

Financial metrics that matter

“you know best in class you see 115 120 and above sas keck ratio or the cost of ar and actually pascal mentioned that yesterday is the dollars that you put into your sales and marketing engine what do you get out from that so what's the cost of arr so does it cost you if you put a dollar into your sales and marketing engine do you get a dollar out that's the sas cac ratio dollar for dollar is a good goal or less and then your payback period”
Watch at 03:55

Building a believable forecast

“templates because you could download download those for free from my site and so key areas that i look at to create a believable forecast because i don't know at this point i've done thousands of forecasts is your top of funnel so do you have self-service sign up website visitors to trial to paid do you speak the bookings language through your crm system so what's driving your revenue in each revenue stream what's your pricing do you know customer count asp the layers of your mrr expansion”
Watch at 08:12

Planning spend and milestones

“to support the cogs infrastructure are you going from founder led sales to sales and marketing so where are you investing and then finally i know as sas founders you can spend a lot of money but what milestones are you going to hit so yeah i know you can spend a million bucks but is that to get your first 10 customers your first billion of ar is it to move into an ancillary market a different geography so with that money what milestones will”
Watch at 12:04

Preparing for due diligence

“want financial projections so download my checklist because the preliminary due diligence checklist maybe about 10 items but if you go through an exit process it's probably going to be 50 to 60 items so be prepared about what they're going to ask you know so you're not kind of blindsided when you when you get to that point ben are any of these playbooks on your website yeah all of these playbooks are on my website you can download my forecast model you can download preliminary url uh it's the so”
Watch at 16:24

What numbers play to your strength?

“What numbers play to your strength?”
Read slide 2

Your Forecast Playbook

“My templates have raised $100M+”
Read slide 6

Know How You Will Use The Funds

“Know How You Will Use The Funds”
Read slide 10

Don’t Let Investors Dictate Your Financial Profile

“Don’t Let Investors Dictate Your Financial Profile”
Read slide 19

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Resource files

  • Video

    Watch video

  • P&L Format For Raising (Slide 6)

  • 9 Do's and Don'ts of Raising Capital - Slide Deck

About the speaker
Ben Murray

Ben Murray

Founder · SaaSCFO

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Ben helps SaaS companies via fractional SaaS CFO services, coaching, and courses in SaaS metrics and finance. He helps companies achieve financial improvement and transparency via a SaaS finance framework that links operations to finance. From debits and credits to financial forecasting to M&A, his experience has not just been silo’ed in the accounting or finance track, but both sides of the desk. His operations background at several airlines has improved his ability to translate operational performance into improved financial understanding and foresight. His on-the-job experience as a SaaS CFO has allowed him to help thousands of SaaS founders and finance teams.

Company revenue
$100K
Team size
2

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Slide by slide

Each slide with a short explanation of what it shows. Open the slide text for its exact wording.

20 passages

Making investor data usable

  1. Slide 1Open deck
    Slide text

    March 2022 March 2022 | Ben Murray, Founder of TheSaaSCFO.com Ben Murray Founder of TheSaaSCFO.com 9 Ways to Increase Odds of Success

  2. Slide 2Open deck

    Three themes structure the tactics

    The talk groups its fundraising tactics into numbers, story, and preparation. The agenda previews financial readiness, market sizing, fund use, due diligence, and team building.

    Slide text

    What numbers play to your strength? 9 Tactics To Increase Odds of Success Secrets pulled from 10’s of SaaS founders who pay me as Fractional CFO Make it easy Forecast your financials More than numbers Got TAM? Big funding errors Are we doing this? Due diligence playbook Dream team NUMBERS PREPARATION STORY

  3. Slide 3Open deck

    Make financial data easy to assess

    Founders who know their numbers can make it easier for investors to evaluate the business. The slide introduces a playbook for organizing data and forecasting financials.

    Slide text

    “To be honest, the numbers are little fuzzy right now.” Anonymous founder Founders that know their numbers increase their odds of funding 3 ways to make it easy for investors to consume your data. The playbook I used to help founders forecast their financials and raise millions Know Your Numbers

Protecting the financial profile

  1. Slide 4Open deck

    Know your financial profile

    Founders should understand their financial profile before investors define it for them. The slide highlights net dollar retention above 115%, SaaS CAC ratio below $1.00, and CAC payback under 12 months.

    Slide text

    Don’t let investors dictate your financial profile Know your financial profile Net Dollar Retention > 115% SaaS CAC Ratio < $1.00 CAC Payback < 12 months

  2. Slide 5Open deck

    Check the structure of your P&L

    A reliable profit and loss statement depends on sound revenue recognition, department structure, and a SaaS chart of accounts. The speaker says he has reviewed many P&Ls.

    Slide text

    Is Your Profit and Loss Wrong? 100’s of P&L’s analyzed Revenue Recognition Department Structure SaaS Chart of Accounts

Forecasting the business

  1. Slide 6Open deck

    Build a forecast from operating drivers

    A useful forecast connects bookings and revenue to pipeline, pricing, delivery, people, and operating expenses. The example P&L maps these drivers across actual and forecast months.

    Slide text

    Your Forecast Playbook My templates have raised $100M+ OpEx Profile Pricing & Revenue Model People $100M+ Raised! Pipeline & Bookings Delivery of Revenue

  2. Slide 7Open deck

    Tell a story with your numbers

    The numbers need a clear narrative regardless of ARR size. The upcoming section covers framing financials, estimating TAM, and explaining how funding will be used.

    Slide text

    Your story matters regardless of ARR size 3 tactics on how to craft your numbers into a powerful story 3 methods to estimate TAM 3 common errors founders make when explaining to investors how they will use funds Tell Your Story

  3. Slide 8Open deck

    Explain more than the numbers

    A fundraising story should explain the team and its experience, the problem being solved, and the competitive landscape. The slide also promotes a pitch deck template.

    Slide text

    Don’t Just Talk Numbers! It’s your job to tell a compelling story. Your team and experience The problem you are solving Competition is good Download my pitch deck template!

  4. Slide 9Open deck

    Estimate TAM from customer economics

    Investors use TAM to judge the potential investment and return. The slide contrasts a bottom-up estimate based on target customers and pricing with revenue projections tied to go-to-market and ideal customer profile, and warns against unsupported market-share claims.

    Slide text

    Got TAM? TAM helps investors size investment and return. Bottoms Up Target Customers x Pricing Model Revenue Projections GTM model, pricing, and ICP. Market Share % Don’t say you can capture X% Your analysis is in the hot seat!

Explaining use of funds

  1. Slide 10Open deck

    Tie funding to planned milestones

    Founders should be ready to explain how they will use the funds. The slide recommends identifying the P&L areas to invest in and the milestones that funding is expected to support.

    Slide text

    Know How You Will Use The Funds Be prepared to discuss how will use the funds. Come prepared to discuss details Be specific about where in your P&L you will invest Define the milestones that you will hit with the funding

  2. Slide 11Open deck

    Prepare before raising funds

    Preparation includes avoiding common fundraising mistakes, organizing due diligence, and assembling the right team. These topics lead into the next section.

    Slide text

    3 mistakes founders make before they raise funds The due diligence playbook I use with founders that increase odds of funding Why it’s important to assemble your team Be Prepared

  3. Slide 12Open deck

    Assess the demands of a raise

    Founders should decide whether they can commit to the full-time work of fundraising, clarify their ask, and consider founder-investor fit.

    Slide text

    Be Prepared Don’t make these common mistakes. Are you in our out? It’s a full-time job. What’s your ask? Do you have founder/investor fit?

Preparing diligence materials

  1. Slide 13Open deck

    Organize diligence into data areas

    A due diligence playbook should be in place before the raise. The checklist groups preparation around revenue and customer data, pipeline and sales performance, and financial projections.

    Slide text

    Due Diligence Playbook Implement your data playbook before your raise. Revenue & Customer Data Pipeline & Sales Team Performance FInancial Projections Download my due diligence checklists!

  2. Slide 14Open deck

    Assemble advisors and internal owners

    Preparing for a raise takes internal capacity and outside expertise. The slide prompts founders to assign data work internally and line up legal and tax advisors before fundraising begins.

    Slide text

    You Need a Team Assemble your team prior to the raise. Pulling data is a lot of work. Who is on your internal team? You need legal and tax advisors. Don’t contact me mid-raise

  3. Slide 15Open deck

    Review the three fundraising themes

    The recap organizes the talk into numbers, story, and preparation. It revisits making financials easy to understand, building a market narrative, completing diligence, and assembling a team.

    Slide text

    What numbers play to your strength? In Summary, I just showed you: Secrets pulled from 10’s of SaaS founders who pay me as Fractional CFO Make it easy Forecast your financials More than numbers Got TAM? Big funding errors Are we doing this? Due diligence playbook Dream team NUMBERS PREPARATION STORY

  4. Slide 16Open deck

    Thank you from Ben Murray

    The closing slide thanks the audience and identifies Ben Murray as the speaker.

    Slide text

    March 2022 | Ben Murray, Founder of The SaaSCFO.com Ben Murray Founder of TheSaaSCFO.com

  5. Slide 17Open deck

    Nine tactics span three themes

    The overview maps the talk's tactics to knowing the numbers, telling the story, and being prepared. It presents these as the core areas for improving the odds of raising capital.

    Slide text

    What numbers play to your strength Know Your Numbers Make it easy for investors Forecast your Financials It’s more than numbers Got TAM? Funding errors Are we doing this? Due Diligence Playbook Dream Team Tell Your Story Be Prepared Need icons Over The Next 20 Minutes, You’ll Get 9 Tactics To Increase Your Odds of Raising Capital

  6. Slide 18Open deck

    Review accounting foundations

    The example SaaS P&L emphasizes revenue recognition, department structure, and a suitable chart of accounts as areas to review. It shows revenue, costs, operating expenses, and EBITDA across three months.

    Slide text

    Your SaaS P&L Is Wrong! Avoid these common accounting mistakes. Revenue Recognition Department Structure SaaS Chart of Accounts Reviewed 100’s of P&L’s!

  7. Slide 19Open deck

    Set financial targets in advance

    Founders should know the financial profile they want investors to assess. The slide lists net dollar retention above 115%, SaaS CAC ratio below $1.00, and CAC payback under 12 months.

    Slide text

    Don’t Let Investors Dictate Your Financial Profile “To be honest, the numbers are little fuzzy right now.” Anonymous founder NDR > 115% SaaS CAC Ratio < $1.00 CAC Payback < 12 months

  8. Slide 20Open deck

    Connect the forecast to operating levers

    The forecast combines pipeline and bookings with revenue, delivery costs, and operating expenses. Arrows connect those drivers to a monthly P&L, while a callout states that the speaker's templates have supported more than $100M raised.

    Slide text

    Your Forecast Playbook My templates have raised $100M+ OpEx Profile Pricing & Revenue Model People $100M+ Raised! Pipeline & Bookings Delivery of Revenue