Fundraising Assumptions
Definition
Explicit assumptions underlying the fundraising plan: valuation expectation, lead-investor probability, time-to-close, post-close runway, and what changes if any assumption breaks. Common pitfall: assumptions are made implicitly and only surface in the postmortem. Boards should require this section to be reviewed each update — a board update where assumptions never change suggests they are not being tested, not that they are correct.
Why it matters
Anchors the fundraising plan to falsifiable beliefs. Lets the board pre-agree on what would constitute a "this is not working, change the plan" trigger.
How it's calculated
Narrative — enumerated assumptions, each ideally with (1) the assumption, (2) the rationale, (3) what changes if it breaks. How to interpret it
Assumptions that diverge from `risk_factors` are a signal of inconsistency. Assumptions that have been broken without triggering plan change are the strongest red flag — pair with a board discussion of when to change course.
Source
imboard Editorial
Stage relevance
Typically owned by
Related KPIs
Free-text narrative covering the planned fundraising approach for the current round: target investor types (lead profile, co-investors), timing, sequencing of the conversation, use of proceeds, milestones the round will get the company to, and the alternative scenarios if the primary plan slips. This is the "what is the CEO actually doing" section of the fundraising update. Common pitfall: strategy that does not name a target lead investor profile or use-of-proceeds milestone is not strategy — it is intent. Boards should push for specificity here.
Named risks that could prevent the round from closing as targeted — market conditions (general venture sentiment, sector-specific freeze), investor-side risk (anchor investor wobble, partner-meeting drop-off), company-side risk (a metric trending wrong direction, customer concentration concern surfaced in diligence), and timing risk (runway versus close date). Common pitfall: optimistic CEOs under-report risk factors. Boards should expect at least 2–3 named risks even in a healthy round — "no risks" is itself a risk signal.
Target gross capital the company intends to raise in the currently active round (the "ask"). This is the headline number the CEO walks investors through and the board uses to sanity-check dilution and runway implications. Note the distinction from `total_round_size` (which can include third-party participation beyond the company-led ask) and from `minimum_close_amount` (the floor at which the round can close). Common pitfall: the target is updated mid-process when investor demand or strategy shifts — every change deserves a board note.
Calendar date by which the round is expected to close (final wires received, definitive documents signed). Compared against `finance.runway_months` to detect a fundraising-against-the-clock situation. Common pitfall: planned close dates routinely slip 30–90 days in practice (collected founder postmortems on First Round Review) — boards should ask for both an "expected" and a "no-deal" date and watch the gap to actual runway exhaustion.
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