From Founder to Funded: What Investors Look for in Your Numbers

Your financial statements might make you feel proud. Sales are up, profits are decent, margins are healthy. But investors? They don’t just glance at those numbers and smile. They investigate. They want proof you can keep winning — and grow without the wheels falling off. They’re looking for patterns. They’re looking for risks. And they’re looking for a story that makes them believe your business has a strong future.

Here’s what they care about most:

1. Sales – Steady Wins Over Spikes

Investors want to see your sales going up over time — slowly and surely. They don’t want a single lucky year followed by a slump.

If you had a big jump in sales because your product blew up on social media, that’s fine. But they’ll ask: “Can you keep selling like this when the buzz fades?”

Tip: Share at least two to three years of sales numbers. Mark the moments that drove growth, like new product launches or entering new markets.

2. Net Profit – The Direction Counts More Than the Size

Profit is good. Profit that grows every year is even better. Profit that’s shrinking? That’s a concern.

But here’s the twist: even a loss can be fine if it’s part of a smart growth plan. For example, maybe you’re spending big on marketing now so your brand dominates later.

Tip: Explain what’s behind the numbers. If profits dropped, show why it’s temporary. If you’re losing money now, show when you expect to be in the green — and why you’re confident about it.

3. Margins – How Much You Keep per Sale

They won’t just look at your overall margins. They’ll check margins for each product or service.

If some margins are lower than the competition’s, they’ll ask how you plan to fix it. This could mean negotiating better deals with suppliers, finding more efficient ways to produce, or raising prices.

Tip: Show a product-by-product margin breakdown. Pair weaker margins with your improvement plan.

4. Cash Flow – Money in the Bank Matters

You can be profitable on paper but broke in reality. Cash flow is about how quickly money comes in compared to how quickly it goes out.

Negative cash flow doesn’t automatically scare investors — but they’ll expect you to have a clear timeline for turning it positive.

Example: An event company might have months of outflow before ticket sales start rolling in, but if they can show a reliable yearly cycle, investors will understand.

Tip: Share your cash flow statements and projections. Highlight when cash flow will turn positive and how you’ll make it happen.

5. Customer Acquisition Cost – What It Costs to Win a Customer

This is how much you spend to get one new customer. If you spend too much, profits suffer — even with a great product.

Investors compare your acquisition cost (CAC) to your customer’s lifetime value (LTV). If CAC is lower than LTV, good. If not, you need a plan to fix it.

Example: If you spend $50 on ads to get a customer who spends $200 over the next year, that’s healthy. If that customer only spends $40, that’s a problem.

Tip: Show your CAC and LTV. Explain how you’ll reduce CAC over time, maybe by improving referrals, boosting repeat sales, or using cheaper marketing channels.

6. Customer Churn – Do They Come Back?

One-time customers are nice. Returning customers are better. Investors check your churn rate — the percentage of customers who stop buying.

High churn means your product, service, or customer experience might not be hitting the mark. Low churn says people love what you offer.

Example: A gym with high churn might keep losing members after the first month — meaning they need to improve the onboarding experience or add perks.

Tip: Show your churn numbers. If they’re high, present your plan to keep customers coming back.

7. Debt – How Much You Owe and How You’re Handling It

Debt isn’t always bad. It can help you grow faster. But too much debt, or expensive debt, makes investors nervous.

They’ll look at repayment schedules and whether interest payments eat into your cash flow. They’ll also check your quick ratio — a sign of whether you can cover short-term bills without panic.

Tip: Be upfront about your debts. Show how you’re managing them and why they’re not a threat to growth.

8. Accounts Receivable Turnover – How Fast You Get Paid

If you sell on credit, this is how long it takes for customers to pay you. Slow payments can squeeze cash flow, even if you’re technically profitable.

Investors want to see that you’re collecting payments quickly enough to keep the business running smoothly.

Example: A wholesaler waiting 90 days for payments will feel the strain, even if orders are strong. Offering early payment discounts could speed things up.

Tip: Share your average payment times and any steps you’ve taken to shorten them.

9. Personal Investment – Your Own Skin in the Game

Investors like it when you’ve put your own money into the business. It shows you believe in it and are willing to share the risk.

A founder who’s invested savings into inventory sends a strong message. So does one who’s gone without a salary to fund development.

Tip: Show what you’ve personally put in — money, assets, or time — and what it’s worth.

The Big Picture

Investors don’t decide based on one number. They look at the whole picture — sales, profits, margins, cash flow, customer loyalty, debt, payment speed, and your own commitment.

A business with steady growth, loyal customers, manageable debt, and a clear plan for the future is far more attractive than one relying on a single lucky year.

When you prepare your financials, think like an investor. Spot the weak points before they do. Have your explanations ready. And most importantly — show them where your business is headed, not just where it’s been.

Bottom line: Good numbers show where you’ve been. A solid strategy shows where you’re going — and that’s what wins investors over.