How To Raise Capital:

A Guide For SaaS Startups

Introduction 3

Chapter 1: Getting Ready to Fundraise 4

When Should I Start Fundraising? 6

How Much Money Will I Need? 8

Which Funding Round Is Right For Me? 9

Chapter 2: Choosing Your Backers 11

Types of Investors for SaaS Startups 12

Which Investor Is Right For Me? 15

Chapter 3: Preparing for Investor Meetings 17

Step 1: Compile Your Metrics 18

Step 2: Develop Your Pitch Deck 22

Step 3: Assemble Your Documents 24

A Final Word 28

Additional Resources 30

2
 Introduction
Bootstrapping a SaaS company can be exciting. There’s the thrill of watching the
initial iteration of your product come together, then grow. There’s the anticipation
of receiving feedback from your first users — the satisfaction of knowing that your
product is doing exactly what you built it to do: solve a problem. There’s the rush
of dipping into logo and content creation — the pride of making your first hires and
watching your first marketing campaigns go live.

But bootstrapping is a slow process. For founders, the best way

Unless you already have a proven
to push through the “long
product, thousands of easily acquired
slow SaaS ramp of death,”
customers, and long-term contracts
with those customers, it’s going to
as it’s often been referred
take a while for your SaaS company to to, is to find and secure
achieve profitability. funding.

Getting your SaaS startup funded can help cover product development, marketing,
and sales spend. It can help you expand your team, extend your cash runway, and
secure physical premises. And, it can help you scale fast: companies that receive
funding hit $10 million in annual recurring revenue (ARR) 4 years faster than
companies that bootstrap. In the competitive SaaS industry, this rapid growth can
be the key to beating out the competition and securing market share.

We wrote this eBook to lay out the best funding options for SaaS startups, and
to help you decide what kind of funding is right for your business. We’ll walk you
through how to choose and approach investors, and how to develop your pitch
deck. We’ll also introduce you to the metrics that are important to investors, and
how to create sound financial projections and milestones that will not only help you
secure funding, but keep your business on track.

3
 Chapter 1

Getting Ready
to Fundraise

Like any process, fundraising has its SaaS companies, in particular, are
highs and lows, with some years seeing faring well. SaaS is a highly attractive
a massive influx in cash and others, not industry for investors because they are
so much. Despite these fluctuations, the capital-efficient, and can grow into large,
overall growth trend for fundraising is profitable businesses for less than $10
widely positive: year-on-year, startups million in funding. Gartner estimates that
are raising more capital at higher in 2022, SaaS will generate close to $141
valuations. billion in cloud revenue.

4
Still, the market is competitive, and you need to be
prepared when you approach investors. Before you begin
fundraising, check that you:

9 Have conducted market research.

You should know exactly who your customer is, and how your
product solves their pain-points.

9 Have a minimally viable product (MVP).

Your investors want a product (or an idea) that has a market fit,
and that customers are willing to pay for.

9 Have a story.
You should be passionate about what you do, and the problem
that you’re solving. Afterall, you’ll have to convince investors it’s
worth their time and money.

9 Have data.
A compelling story is great, but numbers sell. You should
understand your internal metrics, including your company’s
valuation. You should also have a strong understanding of
external metrics involving the market and your competition. (More
on valuation and metrics later)

9 Have a plan.
You should know how much money you’re looking to raise, what
your next milestone is, and how you’ll allocate funding in order
to reach that. Consider how much control, if any, you’re willing
to give up to obtain funding and your ability to pay back debt.
Knowing what you want for the future of your company and your
role in it will save you time by helping you find investors whose
goals align with yours.

5
When Should
I Start
Fundraising?
Startup companies have
limited hands on deck,
meaning that as the founder,
where you put your attention
is critical.
Putting too much energy into fundraising too early – like when you should
be developing your product, building customer relationships, or running your
company – can damage any one of these endeavours, costing you time and
resources. Injecting funds into your startup without a clear strategy can amount to
overwhelming investor expectations, wasted money, and a damaged reputation.
This could not only compromise your initial chances of success but also your ability
to raise funds in the future.
If you fundraise too late, there’s also a clear downfall – you could run out of
money. Active fundraising can take 6-12 months, and it can take longer for cash to
hit your bank. Companies that fundraise too late may be forced to make drastic cuts
to sales and marketing to give themselves a few more months of runway. Trying to
secure funding when you’re strapped for cash may also mean rushing through the
most important parts of securing investors, like the relationship-building process,
limiting your chances for success.

If you’re beginning your fundraising journey late, there’s the option to convince
investors to provide bridge financing to hold your company over until the next
funding round. Still, the best way to begin fundraising is to start with a year-long
cash runway, and to start slowly so you can effectively balance your time between
running your company and securing backers.

6
You should also fit into one of the following scenarios:

9 Scenario 1: You have a Minimally Viable Product (MVP) but

cannot develop it without funding.
Your company has some form of early-stage validation, such
as customers using your software in the beta version, but your
product is still bare-boned. You need funding to produce the
features your customers are asking for.

9 Scenario 2: You have an MVP and a plan for growing it.

You’ve created some early buzz about your product. Your
campaigns have been successful and you’ve been able to secure
some early revenue through pre-payments or other forms of early
monetization. You need funding to expand your sales, marketing,
and customer acquisition efforts.

9 Scenario 3: You cannot grow further on your own.

Perhaps you’re still in the idea stage, and you need some level
of funding to hire a critical team member or create your MVP
prototype. Or perhaps your revenue is growing and you’re ready
to scale, onboard new leadership, or tap into a new market. Either
way, you need funding to take your product or service to the next
level.

7
 How Much
Money Will
I Need?
To determine how much funding
you’ll need, consider what your
startup’s next objective is, and
how much money it will take to
reach it.

If your funding scenario involves building up your product, for example, calculate
how much it will cost to pay a developer, to perform market testing, and cover
related expenses. If it involves growing your customer base, consider how much it
will cost to hire marketers, run campaigns, add new channels, upgrade software, etc.

 Your financial plan should also include a thorough

look at your operational costs, and your cash
runway.

SaaS startups may need to go through several rounds of fundraising before they
achieve profitability. The money that you fundraise should give you enough cushion
to not only reach your desired milestone, but cover your growing operational costs
until you make it into the next funding round.

8
Which Funding Round Is
Right For Me?
The first round of fundraising for startups is called the
Pre-Seed round. It’s followed by a Seed round, then Series A,
Series B, Series C, and so on. Most startups begin their journey
at either the Pre-Seed or Seed rounds.

Pre-Seed Round Seed Round

The Pre-Seed round is typically The Seed round is the first formal
an informal stage of fundraising funding round and requires a bit
where investors aren’t yet looking more from startups: the company
for a mature product, just a should be further along, with
capable team with a great idea. early traction from customers.
Most startups will use the Pre- In exchange, backers are often
Seed round to seek funding from willing to make substantial
friends and family. Not only does investments, with the average
this give founders preliminary funding amount coming in at
capital, it also improves the $100K to $5 million. By the time
likelihood that VCs will engage startups reach Series A funding,
with you further down the line: investors will require clear proof
net-net, they want to know that of ability to build something
you’re confident and passionate profitable.
enough to ask for money from
people who know you first-hand.

Your company’s stage, valuation, and current funding needs will determine which
round is right for you. As your startup shows proof of success, your valuation will
increase, as will the amount that investors are willing to spend. (More on valuation
later)

9
 SaaS Funding as of 2021

Pre-Seed Seed Series A Series B Series C+

Funding < $1M $100K – $5M $3M – $12M $10M – $50M $20M – $120M
Amount

Valuation < $4.5M $2M – $12M $10M – $50M $30M – $270M $80M – $900M

Company Inception. Product Signs of product/ Clear and growing Ready to scale. Ready for large-
Stage and operations market fit; some evidence of scale expansion.
are first coming degree of traction. product/market fit.
together.

ARR $0 – $600K $0 – $600K $0.5M – $4M $3.5M – $12M $5M – $40M

Investors Friends and Angels, early- Some “super” VCs, late-stage Late-stage VCs,
family, early-stage stage VCs, startup angels, VCs. VCs. private equity
angels, startup accelerators. firms, hedge
accelerators. funds, banks.

What To know why Signs of product/ Significant revenue Increasingly Increasingly

Investors you’re convinced market fit. This growth from quantitative signs quantitative signs
Want that you found a might include new customers of growth. of growth.
big problem that happy users, a and increasing
you’re uniquely growing wait list, Average Revenue
qualified to solve or month-on- per Account,
better than anyone month revenue good senior hires,
else. growth. product velocity,
and other signs of
success.

What the To hit one or more Fuels a startup’s Develop new sales Expansive hires Large-scale
Money Is of the milestones move beyond its and marketing (across business expansion, like
Used For the founding founding team, processes, identify development, moving into a new
team will need to funds product new channels, and strategic accounts, market (commonly
ready themselves development, and understand your marketing and international
for “true” Seed in some cases, ideal customer. customer success), expansion), or to
investment: from even facilitates expanding into fuel acquisitions of
hiring a critical early revenue different market other businesses.
team member generation. segments or
to developing a experimenting
prototype product. with different
revenue streams.

10
 Chapter 2

Choosing Your
Backers

Equity funding, or funding that’s given in exchange for a stake

in a company, is the most common way to raise capital in
the SaaS world. But whether you’re seeking financing from
venture capitalists or something that will give you little to no
dilution, there’s an option for you.

Here are the best types of investors for SaaS startups

11
Types of Investors for
SaaS Startups
Angel Investors
• Angel investors are wealthy individuals who provide capital to
startups in exchange for equity.
• Angel investors typically fund startups in the Pre-Seed and Seed
rounds. They are willing to take risks on early-stage startups for a rate of return that’s
higher than they would receive from more traditional investments.
• Angel investors may want to develop a personal relationship with founders beyond
financing. They might offer their skill sets, mentorship, or connections to help you
succeed.
• As an equity holder, angel investors typically want a say in how the business is run and
will also receive a portion of the profits when the business is sold.

Venture Capital Investors

• Venture Capitalists, also known as VCs, invest in startups at a variety of stages, from
Seed to Series C+.
• They put a lot of money into startups that they’re interested in, and also take on a
significant portion of control.
• The right kind of VC firms can offer expertise and connections in the market that can
help you get in direct touch with other investors, interested clients, and parties that
could further grow your business.
• VC investors can be easier to find and research than angel
investors, however, they can be a tougher audience. Securing
meetings with VCs can be time consuming, and raising funds
can take several months.
• VCs rely on gains from your business to make money,
meaning that you shouldn’t go with VCs unless you’re
planning on selling your business in the future.

12
Venture Debt
• Venture debt, also known as venture lending, is a form of debt financing offered to
growth-stage startups.
• Venture debt generally consists of a 3 - 4 year loan provided by technology banks and
dedicated venture debt funds to venture capital-backed businesses.
• This type of financing can help minimize equity dilution
and build your startup’s credit.
• Venture debt requires loan and interest payments that
can make it difficult for your business to expand.
• If you’re unable to pay back the loan, you risk losing
your personal assets.
• Debt financing requires more proof of revenue than
most equity backers, making it hard for younger
startups to secure this type of funding.

Accelerators & Incubators

• Accelerators are organizations that offer support and
funding to startups, often in exchange for equity.
• Startups may receive office space, supply chain
resources, and mentorship.
• Accelerator programs typically run for 3 - 6 months.
During this period, development projects are time-
sensitive, and very intensive.
• Incubators are similar to accelerators in that they provide support and funding to
startups. However, they are often run as nonprofits and are less likely to ask for equity
in return for their services.
• Incubator programs generally last 1-5 years. They offer less access to capital and less
intensive mentoring. They are a good choice if your objective is slower growth.
• Accelerators and incubators are both extremely competitive and selective.

13
Government Funding
• Most countries offer some degree of funding for startups
and small businesses.
• Government grants can reach high levels of funding like
VC firms, but without requiring any equity in return.
• Canada’s IRAP program, for example, offers large-scale
funding and advisory support for small or medium-sized
businesses pursuing technology-driven innovation.
• Grants have a clear objective: they might be for a specific industry, team (for
example, women-owned business), or goal (for example, there are government
grants that will give SaaS startups money for hiring).
• Government funding can also include tax exemption programs.
• Canada’s Scientific Research & Experimental Development (SR&ED) program, for
example, offers investment tax credit to SaaS companies, helping keep operating
costs low.

Private Grants
• Corporations and foundations may offer grants to companies that advance a certain
type of business or fit a specific niche.
• They may also provide funding through contests. For example, the Visa Everywhere
Initiative provides winners with monetary prizes and exposure.
• Corporations may offer a service to businesses who get
the grant. The FedEx Small Business Grant, for example,
not only gives winners money, but free printing services
as well.
• Private grants can have less red-tape than government
grants.
• Because there’s no single central database for corporate
and private grants, you’ll have to do a little more research
to find opportunities that fit your business.

14
Which Once you have an idea
of which type of funding

Investor Is you’re interested in

pursuing, you should
Right For search for financiers with
time and care.
Me? Selecting an investor is
like choosing your spouse.
They should have a similar
mindset to your team and
some level of ‘chemistry,’
because if the investment
goes through, your
investors will become part
of your team. At the end of
the day, investors should
be compatible with your
business and aligned with
your goals.

15
Here are a few steps to decide if an investor is right for you:

1. Create an investor wishlist.

How hands-on do you want your investors to be? How often should they
want to hear from you? How much involvement should they have in your
business? How much equity are you willing to part with, if any? What
connections or assets do you want them to have?

2. Do research to find investors who fit the bill.

Tell credible friends, family, and business partners what you’re looking
for, and ask for introductions or recommendations to investors who
would be good for you. Investors usually get many inquiries and one way
for you to stand out is to get highlighted as a company that is valuable
and worth paying attention to by someone they trust.

3. Pre-qualify investors.
Understand their investment criteria, find out if they can provide the
minimum capital you’re looking for, and if they invest in SaaS companies.
Look into who they’ve funded in the past, and know their interests. Skip
meetings with investors who don’t fit the bill.

4. Start making connections.

There are plenty of things you can do to make sure potential backers
know who you are. You can even put your startup on sites like AngelList
or Crunchbase. You can speak at conferences, meet them over drinks,
set up calls, and even send them email updates. The key is to start slow,
and remember that this is a mutually beneficial opportunity. Try asking
for their advice to get a clearer idea of what you’d need to achieve to get
their money.

5. Approach 6 investors at a time.

Most business owners can carry on conversations with up to 6 potential
backers at the same time. Create a list of 6 organizations or people you
would like to have funding your company, and approach them with the
intention of getting better acquainted. As names drop off your list for one
reason or another, you can then fill in those gaps with your 7th, then 8th
option. Eventually your list will narrow to 1-2 relationships where the
timing, style and strategy seems right on both sides.

16
 Chapter 3

Preparing for
Investor Meetings

Once you’ve secured a meeting with an investor, you’ll need to

be prepared to prove that your startup is a good investment
opportunity. To do this, you must come to the table with
numbers, a pitch deck, and appropriate documentation at the
ready.

17
Step 1: Compile
Your Metrics
For your company to be a top performer,
you need KPIs to measure your growth,
keep you abreast of the competition, and
provide prospective investors with insight to
your company’s growth trajectory.

KPI #1. Net MRR Growth Rate

Your net monthly recurring revenue (MRR) growth rate is one of the first metrics investors
look for because it answers the question: how fast is your SaaS company growing?
It factors in new customers, customer churn, upgrades and downgrades while accounting
for month-to-month variation.
To calculate your Net MRR Growth Rate, start by calculating your Net MRR:
$ Net MRR = $ Existing MRR + $ New Business + $ Reactivation + $ Expansion
– $ Churn – $ Contraction

Then, calculate the Growth Rate Percentage:

($ Net MRR Month B – $ Net MRR Month A)
% MRR Growth Rate = x 100
$ Net MRR Month A

KPI #2. Average Revenue Per Account (ARPA)

The average revenue per account (ARPA) shows approximately how much revenue each
customer is bringing in per year or month. Investors like this metric because it shows a
company’s success at a per-unit level and highlights which type of customers generate the
most and least revenue.
To calculate the ARPA, use this formula:
$ Net MRR
$ ARPA =
Total # of Customers

18
KPI #3. Net MRR Churn Rate
The net MRR churn rate is the measure of lost revenue month over month (due to
cancellations and account downgrades) after factoring in revenue expansion from existing
customers. Investors are looking for a number that’s as close to zero as possible, or even in
the negatives.

Here’s how to calculate your Net MRR Churn Rate:

($ MRR Churn – $ Expansion MRR)
% MRR Churn Rate = x 100
$ Total MRR at the Start of the Month

KPI #4. Customer Churn Rate

The Customer Churn Rate measures the number of customers who cancelled or didn’t
renew their subscriptions in a given period. Churn happens naturally in every business.
However, a high churn rate can negatively impact your cash flow and operations.

Here’s how to calculate your customer churn rate:

(# of Customers Beginning – # of Customers Ending)

Customer Churn Rate = x 100
# of Customers Beginning

KPI #5. Lead Velocity Rate (LVR)

The lead velocity rate (LVR) measures your pipeline development by showing the growth
of qualified leads month over month. By looking at how many quality potential customers
you’re working on converting, investors can have a sense of future growth projections.
You can determine your lead velocity rate using this formula:

(# Qualified Leads This Month – # Qualified Leads Last Month)

% Lead Velocity Rate = x 100
# Qualified Leads Last Month

19
KPI #6. Customer Lifetime Value (LTV)
The customer lifetime value (LTV) is the average revenue a single customer is predicted
to generate over the duration of their account. It shows how much you expect to earn
from a customer during the time they’re with your company and there are several ways to
calculate LTV.
For startups who are just gaining traction, this is a simple way to do so:
$ Average Revenue Per Customer
$ LTV =
Customer Churn Rate

KPI #7. Customer Acquisition Cost Payback Period

The customer acquisition cost (CAC) payback period determines how long it will take you
to pay back the cost of acquiring a single customer. It’s one of the best ways to measure
your company’s capital efficiency and can help you figure out how much money your
company needs to grow. The general benchmark for startups to recover CAC is 12 months
or less, otherwise your company will require too much capital to grow. High performing
SaaS companies have an average CAC payback period of 5-7 months.
Before you calculate your CAC payback period, you need to first calculate your CAC:
(Total Sales Expense + Total Marketing Expense)
$ CAC =
# of New Customers

Here’s how to calculate your CAC payback period:

$ CAC
# Months to Recover CAC =
$ ARPA x Gross Margin %

KPI # 8. LTV: CAC

The LTV:CAC metric determines whether a customer is worth more than what it costs
to acquire them. LTV:CAC is important once the growth process of your company is
repeatable and scalable. LTV should be about 3 x CAC for a viable SaaS recurring revenue
model.
To determine this metric, simply compare the LTV to the CAC like so:

LTV
LTV : CAC =
CAC

20
KPI #9. Gross Profit Margin
Your gross profit margin measures your total revenue minus cost of goods sold (COGS).
For SaaS startups, this will mostly be network and delivery costs. One of the reasons
investors love the SaaS industry is that it has high gross profit margins. While it’s normal
to have high upfront costs and limited revenue when building your startup, your gross
profit margin should reach the 75% – 80% range as it matures.
Here’s how to calculate your gross profit margin:
(Net Sales – COGS)
Gross Profit Margin % =
Net Sales

KPI #10. Compound Annual Growth Rate

Compound Annual Growth Rate (CAGR) is the mean annual growth rate of your company
over a specific period of time. Investors might calculate the CAGR over 3 years, for
example, to measure how their investment in a startup has paid off over that time period.
Startups should aim for 20% CAGR.

Here’s how to calculate CAGR:

( )
1
Ending ARR
% CAGR = # Years –1
Beginning ARR

21
Step 2:
Develop Your
Pitch Deck
A successful pitch deck needs to
give your audience a reason to pay
attention in the first 2-3 slides.
Here’s what you should include in
your pitch deck:

1. Your Company Information

Include your logo, company name, and contact information on the opening slide.
All should be easily visible.

2. The Concept
This can usually be communicated on the opening slide with a high-resolution
image that represents the business or shows the product in action and a
powerful tagline.

3. The Problem
What is the problem that you’re trying to solve? Why now, and why you?

4. The Solution
How is your company solving the problem?

5. Market Size
Show the research you’ve done into the market. Reveal any gaps and the
potential size of the opportunity. Use metrics and reference credible sources.

6. The Competition
You need to be aware of which other companies are vying for market share.

7. Your Competitive Advantage

Show your advantages over your competition. What are you doing better and
differently than they are that will get you customers?

22
 8. The Product
What does your software do? Include screenshots or clips of your product in
action. This should be easy-to-follow and comprehensible.

9. Your Traction
What testing have you done? What feedback have you gotten? How many
paying customers have you onboarded? What does your growth trajectory look
like?

10. Your Business Model

What is your basic business model for acquiring customers and generating
revenue? Show your payment model, plans and pricing.

11. Your Basic Financial Forecast

This is one of the most important slides in your pitch deck. Show off key metrics,
like your CAC, LTV, CAGR and Net MRR Growth Rate.

12. Other Investors

Whether you’ve received Pre-Seed investments from friends and family or Seed
investments from angels, your pitch deck should include social proof that you’re
a worthwhile investment.

13. Use Of Funds

Show your plan for using the money, and what it will help you accomplish.

14. Your Leadership Team

Who is your core team and what is their industry and business experience?
Who, if any, are your advisors?

 Although you should be focused on the content,

strong design and compelling graphics will give
you a leg up.
Look at successful SaaS startup pitch decks for inspiration, and
remember to practice your pitch before you go in. You should be
prepared to answer questions like what is your ultimate goal for the
business, which marketing channels get you the highest ROI, and how
will you allocate funding?

23
Step 3:
Assemble
Your
Documents
A pretty pitch deck will take you far – just
not all the way. Be sure to have these
documents prepared when going into a
meeting with an investor:

; Company Valuation ; Financial Statements

; Financial Projections ; Intellectual Property Legal

Documents
; Cap Table
; All Material Agreements
; Organization Chart

24
Company Valuation
Whether or not your startup is currently profitable, you’re going to need to go into
your investment meeting with some form of valuation. There are a few ways to
value SaaS companies:

1. Seller Discretionary Earnings (SDE).

SDE measures what is left after the owner has paid all expenses, such as
payroll, software expenses etc. This is the best way to value early-stage startup
businesses making under $5 million in annual revenue:

SDE = Revenue - Cost Of Goods Sold - Operating Expenditures + Owner Compensation

2. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

EBITDA is a better and more accurate valuation for mature businesses that
make over $5 million in ARR. The way to calculate EBITDA is simple, and is
reflected in the name of this method:

EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization

You can also calculate the EBITDA margin and compare it with your industry
average to see where you stand:

EBITDA
EBITDA Margin =
Total Revenue

3. Revenue.
Revenue-based valuation is done using the MRR and ARR to forecast future
growth. To use this model, you should have an ARR of at least $2 million, and
strong indicators of 50% growth year-over-year. Your startup should also be
at a stage where you can prove that founder involvement is not critical. This
method will give you a higher multiple than SDE valuation, and is great for
Pre-Seed and Seed startups.

25
Financial Projections
Financial projections are as necessary for VC investments as they are for bank
loans. Short-term projections usually cover a year and are typically broken down
by month. Long-term projections typically cover the next 3-5 years and are
an important strategic roadmap for investors. Expenses, revenue, and growth
patterns should all be outlined in your projection. Enkel can help you generate a
cashflow forecast to show investors or lenders.

Cap Table
A cap table (also called capitalization table) is a spreadsheet that indicates each
investor’s percentage of ownership in a company, the value of their securities,
and dilution over time. Cap tables quickly become complex after a few rounds of
funding, eventually expanding to list potential sources of funding, initial public
offerings, mergers and acquisitions, and other transactions. Apart from recording
transactions, a cap table also comprises many legal documents such as stock
issuances, transfers, cancellations, conversion of debt to equity, and more. Startup
founders must manage all these transactions and documents consistently and
accurately to show the events since the company’s inception.

Organization Chart
Your organization chart gives investors a quick and easy look into the inner
workings of your startup by showcasing your team members in the form of a
flowchart. Like a family tree, the organization chart shows who is the president of
the company, who is under them as vice president, who the managers are, and so
on. They spell out complicated duties by linking team members to show who they
collaborate with and report to.

26
Financial Statements
Up-to-date financial statements are non-negotiable when speaking with investors
or lenders. A Balance Sheet (BS), Income Statement (P&L), and Cashflow
Statement can all give backers an accurate financial portrait of your startup. Tech
financial experts can help you streamline your bookkeeping process and navigate
your financial statement audit.

Intellectual Property Legal Documents

Investors and VC firms will often evaluate the value of your IP portfolio when
making decisions about funding. Startup founders should have complete
ownership of all IP assets in writing not only to secure funding, but also to avoid
costly claims and companies trying to replicate your business model.

All Material Agreements

Any material agreement, such as a partnership agreement with external firms
that contribute significantly to your revenue, should be documented in writing and
accessible for investors reviewing your startup’s portfolio.

27
 A Final Word
On a good day, fundraising can feel wildly validating. On a bad day, it can feel like
the hardest part of building your company.

The key to securing funding is to stay excited enough about it to keep the
experience positive and interesting. To do that, it’s critical that you understand your
company’s performance early. Thorough documentation of your startup’s finances
will do more than just improve your pitch and satisfy investors. Understanding your
company’s net worth can also help you secure better interest rates, investment
deals, and tax credits.

By beginning your journey with solid “We’re now better prepared for
financials, you can cut significant discussions with investors and
headache and doubt out of the VCs because we have a clear
picture of forecasts, burn rate,
fundraising process. Dan Pichette, VP
customer acquisition cost, true
of Business Development for Output
cost of services, and business
Co, tells how this step uplifted his runway. It’s visibility we just
company... didn’t have before.”

If your company is struggling to stay up to date with bookkeeping or lacks the

financial leadership required to support your fundraising efforts, Enkel can help!

28
Get Your Financials
Ready For Funding
Enkel can help you manage your back office accounting tasks so you don’t
have to hire a bookkeeper, controller, payroll professional, or AP clerk. Our
team of experienced professionals help SaaS startups fill their bookkeeping
and accounting gaps so you can focus on running, funding, and growing your
business.

We can help with:

9 Accurate monthly bookkeeping and deferred revenue tracking

9 Reliable investor and covenant reporting

9 Budgeting and forecasting one-on-ones with a professional controller

9 Hassle-free payroll processing

9 Optimized chart of accounts for easy SR&ED expense tracking

Book a meeting with us today to learn how Enkel can keep your books up to
date and investor ready!

BOOK A MEETING

www.enkel.ca [email protected]

29
 Additional Resources
Fundraising Tips Canadian Grants & Tax Incentives
y How to Prepare Your Startup y 7 Government Grants Every Tech
Finances for Fundraising Success Entrepreneur Should Know About

y How To Be Investor Ready y SRED or SR&ED: Either Way, it’s

Easy Money in the Bank if Done
y How Bookkeeping Supports a
Right
Merger or Acquisition
y IRAP Funding: What You Need to
Know

Strategy & Growth Accounting Process Optimization

y Building Accounting Functions y 8 Top Accounting Software & Tools
That Scale with Your SaaS for SaaS Companies
Company
y 7 Tips to Optimize Your SaaS
y How to Use Your SaaS Success Bookkeeping Process
Metrics to Grow Your Business

y 11 SaaS Metrics to Track Growth

30