Ignition partner Helen Gerrard delivered a clear, practical primer for founders and business owners aiming to become “funding ready,” focusing on the financial and legal steps that most often determine whether a company secures investment.
Helen framed fundraising as an outcome of preparation: investors fund predictable, well-documented businesses. The three immediate priorities for founders are:
- Tidy financial records
- A defensible legal structure
- A pitch that maps directly to metrics investors track
On finance, Helen advised founders to prepare at least 12–18 months of forecasted cash flow and to reconcile historic accounts. Common red flags for investors include:
- Incomplete books
- Missing bank reconciliations
- Unclear revenue recognition
- Practical fixes include adopting a consistent chart of accounts and using monthly management accounts to track burn and runway.
Helen also walked attendees through the typical legal issues that slow or derail deals: ambiguous founder shareholdings, incomplete option plans, unclean intellectual property assignments, and poorly drafted investor documents. Early legal housekeeping, documented founder agreements, clear IP assignment, and a properly set-up cap table, can avoid surprises during term sheet negotiations.
For founders wanting a deeper dive into what to expect at this stage, see our term sheets guide for a breakdown of the key terms and investor protections you’ll encounter.
Helen also ran through negotiating basics: clarifying valuation drivers, understanding liquidation preferences, and keeping investor protections reasonable to avoid future fundraising friction. She closed with a checklist for deal readiness and an invitation to contact Ignition for tailored legal and financial support.
Key takeaways
Keep tidy, month-by-month financials and a 12–18 month forecast
Fix legal housekeeping early: cap table, IP, options, founder agreements
Understand the investor language (term sheets, preferences, covenants) before negotiating — and review Ignition’s term sheet guide for practical context
If you missed the webinar, feel free to catch up here.
