Tip #83: Use of funds

Tip 83: Use of funds. Investors want to know what you are planning to spend this capital on. Use of fund tables (another table? really?) often look something like this:

 
 

Moderate to high marks for brevity; low marks for being useful.

Product development – for what? Sales & marketing – for what? Marketing – what? “Scaling” – come on. "Expansion, Marketing, Software“ - that really doesn’t add anything more than saying “We’re raising money to build up our business.”

So Tip #83 – either delete your use of funds table entirely, or expand it to be something useful.

(One other approach would be to integrate it into your financial projections table (or datapoints in circles page). Of course, a separate problem is that very often "use of funds" tables don’t tie to the projections table! Having them on the same page makes it even more imperative that the data ties clearly.)