Case Study 3: Valuation & Capital Raise Preparation
Industry: Growth-Stage Operating Company
Engagement Type: Fractional CFO | Financial Modeling | Valuation & Capital Raise Support
The Situation
A growth-stage company preparing to raise capital had strong operational momentum but lacked the financial rigor needed to support sophisticated investor discussions.
Existing projections were high-level and overly simplistic, failing to clearly communicate the true value drivers of the business. Leadership faced increasing pressure to answer critical investor questions:
What assumptions drive the valuation?
How does capital accelerate growth—and returns?
What happens under downside or slower-growth scenarios?
The goal was clear: maximize capital raised while maintaining credibility with experienced investors.
What We Did
We stepped in as fractional CFO to build a defensible, investor-ready financial foundation.
Our team developed a comprehensive financial model designed specifically for capital raise and valuation discussions. The model incorporated:
Detailed revenue and unit-economics drivers
Fully built cost structure and margin expansion assumptions
Multiple growth scenarios tied to strategic initiatives
Sensitivity and downside analyses to address investor risk concerns
Beyond the model itself, we worked closely with leadership to align the financial narrative with the company’s strategic vision. All assumptions were pressure-tested for realism, transparency, and defensibility—ensuring the story behind the numbers was as strong as the numbers themselves.
The model clearly demonstrated how new capital would be deployed and how it would accelerate growth, scale operations, and increase enterprise value.
The Results
The company entered investor discussions with a clear, credible valuation framework and a far stronger negotiating position.
Leadership gained:
Confidence in articulating valuation and growth assumptions
A model that stood up to investor scrutiny
Improved alignment between strategy, capital needs, and financial outcomes
As a result, the company successfully raised capital on more favorable terms than originally anticipated—without sacrificing credibility or control.
Why This Matters
Investors don’t fund spreadsheets—they fund clear thinking, credible assumptions, and disciplined financial leadership.
This engagement highlights how experienced fractional CFO support transforms financial projections into a strategic tool that drives stronger valuations and better outcomes at the negotiating table.