FINANCIAL DUE DILIGENCE FOR FUNDRAISING

Fashion Startup


A growing fashion start-up needed to quickly raise a new round of investor financing and did not have a detailed, updated financial forecast model.

Challenge
A rapidly growing fashion startup needed to urgently raise a new round of investor financing to meet unexpected but welcome growth. In order to do this they required a detailed, rock solid financial forecast model that would convince VCs of this startup’s long-term viability and stability.

Solution

  • As a fractional CFO, our leads developed a financial model that detailed revenue growth, expense forecasts and estimated monthly cash flow.
  • Detailed working capital waterfall to project A/R, A/P, upfront customer deposits and upfront vendor advances.
  • Provided advisory services to CEO/Founder on capital requirements, pricing strategy and led interactions with 409a valuation consultants.

Results

  • Successfully raised Series B funding.
  • New pricing strategy increased overall margins.
  • Adoption of new financial framework aided data-driven decision making.