Preparing the Data Room
What investors expect to find in the finance folder, and how to assemble it in a day instead of a month.
The standard finance folder
Three years (or since inception) of P&L, Balance Sheet, and Cash Flow by month. Most-recent trial balance. Cap table. Bank statements for the trailing six months. Outstanding debt agreements.
The model
A monthly operating model going forward 24-36 months, tied to historical actuals. Investors stress-test it; defensible assumptions matter more than fancy formatting.
Q&A readiness
Be ready to explain any line item that moved more than 20% month-over-month, every related-party transaction, and every customer concentration over 10% of revenue.
Key takeaways
- 3 years of monthly financials, plus a forward model.
- Defensible assumptions beat polished decks.
- Anticipate variance, related-party, and concentration questions.