The worked case library
See how a fundraising decision comes together
When you’re trying to explain your raise, an example with the numbers left in can help more than another checklist. These fictional cases show the starting problem, the reasoning and a revised output you can adapt. They are teaching examples, not client results.
Fictional worked example
Turn a software hiring plan into an explained funding target
What you’ll leave with: A funding target with a monthly cost bridge.
The starting problem
A fictional software company has $180,000 in cash. Monthly cash receipts are $20,000 and existing expenses are $55,000. The team wants 12 months to test repeatable customer acquisition, with a $10,000-per-month hire starting in month four. The first draft asks for $1 million without explaining the connection to that plan.
Work through the numbers
Existing net burn is $35,000 per month, so twelve months cost $420,000. The hire works nine months in the forecast and adds $90,000. Subtracting $180,000 already in the bank leaves a $330,000 gap. A chosen three-month reserve at the final $45,000 monthly burn adds $135,000, giving an illustrative target of $465,000. This assumes flat receipts, no other new costs and cash collected in the same month it is earned.
The revised explanation
We are planning around a $465,000 cash requirement: $330,000 to cover the modeled operating gap through month twelve and $135,000 held as a three-month reserve. The hire starts in month four. The commercial milestone is to test whether acquisition is repeatable, using a customer cohort and cost definition agreed before hiring.
Change an assumption
If the hire starts in month seven, its forecast cost falls to $60,000 and the target falls to $435,000 with the same reserve. That saves cash, but the founder must also revise the delivery dates that depended on the hire. A later hire is not automatically a better plan.
What still needs checking
The sales assumptions and milestone remain unproven. Model delayed receipts, hiring costs, taxes and a slower customer-acquisition case before adopting a target; financing fees and round costs are not included here.
Apply it to your company
Write your starting cash, monthly receipts, monthly expenses, milestone month, each hire's start month and cost, and the reserve you want to keep. Explain every difference between the calculated gap and the amount on your ask slide.
Check your work
You can reconcile the funding target to the cash forecast, identify the first month cash would run out without funding, and name the assumption that changes the target most.
Fictional worked example
Separate a services company's cash timing problem from its growth plan
What you’ll leave with: A collection calendar and a financing question.
The starting problem
A fictional services company has $40,000 in cash and pays $30,000 in operating costs at the end of every month. It expects a $90,000 customer payment at the end of month three, after that month's operating payments. The founder describes the business as profitable and assumes this means there is enough cash to keep operating.
Work through the numbers
Before the customer pays, cash falls to $10,000 after month one, negative $20,000 after month two and negative $50,000 after month three's costs. The $90,000 collection then restores cash to $40,000. The modeled timing gap peaks at $50,000 even though total receipts equal total expenses over the period. The business needs a way to cover the earlier payments; a negative balance is a warning, not an available overdraft.
The revised explanation
Our immediate financing question is how to cover up to $50,000 of cash timing exposure before this customer pays. We will first check whether an agreed deposit or milestone billing changes the gap, then compare any financing cost and repayment obligation with the signed contract and collection risk.
Change an assumption
If the customer agrees to pay $30,000 before month one's costs and the remaining $60,000 after month three's costs, the lowest balance becomes negative $20,000. The total contract value has not changed, but the peak cash gap falls by $30,000. Do not count a deposit until the customer has actually agreed to it.
What still needs checking
This example excludes taxes, financing fees and other customers. A late or disputed payment can create a larger gap. The scenario does not establish loan eligibility or justify a venture round; compare the financing route with the company's growth model and ability to repay.
Apply it to your company
List the date of each committed outgoing payment and expected collection, mark which collections are contractually agreed, and calculate the lowest running cash balance. Keep a separate column for delayed collections.
Check your work
You can show the date and size of the peak cash gap and explain how it changes if the largest customer pays one month later.
Fictional worked example
Build a hardware milestone budget that survives a supplier delay
What you’ll leave with: A milestone budget with a downside case.
The starting problem
A fictional hardware team has $100,000 cash, no receipts and $25,000 in monthly operating costs. It plans a six-month validation program with a $60,000 tooling payment in month two and $90,000 of testing in month five. Its draft budget includes payroll but leaves those supplier payments in a separate spreadsheet.
Work through the numbers
Six months of operations cost $150,000. Adding tooling and testing brings modeled spending to $300,000, so the gap after existing cash is $200,000. A chosen two-month operating reserve adds $50,000, bringing the target to $250,000. Supplier costs belong in the same cash calendar as payroll even when they sit in different documents.
The revised explanation
We are modeling $250,000 to fund the six-month validation plan and retain a $50,000 operating reserve. The budget includes $60,000 for tooling and $90,000 for testing. Before sharing the ask, we will reconcile the payment schedule with supplier quotes and define the evidence required to call validation complete.
Change an assumption
A two-month delay adds $50,000 of operating cost if the team keeps spending at the same rate. Keeping the original reserve increases the target to $300,000. If testing also requires a $20,000 repeat run, the revised target is $320,000. Do not silently absorb a known delay into the reserve and still describe that reserve as available.
What still needs checking
The model does not establish certification requirements or grant eligibility. Deposits, retesting, shipping and payment taxes need dated supplier evidence. Any unawarded grant or unsigned customer commitment stays outside available cash.
Apply it to your company
Create a row for each supplier payment, link its quote and date, record the technical acceptance criterion, and identify the person responsible. Recalculate the ask when a dependency moves.
Check your work
The milestone budget reconciles to the cash plan, every major supplier cost has a source or is labeled an estimate, and the delay case shows what happens to both the ask and reserve.
Use the cash calculator for the recurring-cost model and keep a dated payment calendar for uneven receipts and supplier costs. The interactive workspace sample lets you explore the process with fictional data; it does not save your work.