Investor Readiness Scorecard — The Oakworth Group

Context

These two questions determine the weighting applied to each domain. They are not scored.

What is the company's current funding and operating stage?

Inception (pre-revenue, pre-institutional capital) Pre Seed (first raise approaching or underway) Seed (first institutional capital raised) Series A (second institutional round raised or approaching) Growth Stage (Series A closed, scaling) Scale Stage (Series B approaching or closed)

What is the primary financial conversation being prepared for?

Angel investors (informal, pre-institutional) Pre Seed institutional investors Seed institutional investors Series A venture capital Series B growth equity Existing investors and board (reporting, not fundraising) Strategic partners or acquirers Unsure

Domain 1 of 6 · Financial Architecture

1. Which statement most accurately describes the company's financial model?

No financial model exists. A revenue and expense spreadsheet exists. It is not structured as a three statement model. Three statements exist but are not dynamically linked. A change in one does not update the others automatically. A fully integrated three statement model exists. Changes to any input flow through all three statements without manual recalculation.

2. How does the company manage and communicate its cash position?

Cash position is checked irregularly, when prompted by circumstances. Cash position is known monthly. Net burn rate is estimated informally. Net burn rate and cash runway are calculated monthly using the correct methodology and reported to the board or existing investors. Net burn rate, runway, and a rolling thirteen week cash forecast are maintained weekly. The founding team can state these figures without consulting a document.

3. How are management accounts or financial reports produced?

No management accounts or financial reports are produced. Financial summaries are produced but more than thirty days after the period end. Management accounts produced within twenty-five business days of period end, covering revenue, gross margin, net burn, and cash. Management accounts produced within fifteen business days with a full income statement, cash flow summary, balance sheet, and written variance commentary for material deviations against plan.

Domain 2 of 6 · Performance Modeling

4. What is the basis of the company's revenue forecast?

No revenue forecast exists. A single growth rate is applied to prior-period revenue. No documented operational basis exists for the rate. A bottom-up forecast exists with documented operational assumptions. Revenue derives from specific measurable drivers. A driver-based model calibrated to the company's specific revenue model exists. The growth model is documented and updated quarterly.

5. Has the company calculated its unit economics?

Unit economics have not been calculated. Customer acquisition cost and lifetime value have been estimated informally. Not formally documented or calculated to a defined standard. Customer acquisition cost calculated on a fully loaded basis. Lifetime value calculated on a gross profit basis. Payback period documented. All of the above, plus unit economics calculated at cohort level, updated quarterly, and segmented by acquisition channel where material differences exist.

6. What scenario and sensitivity analysis does the company maintain?

No scenario analysis exists. A base case exists. No downside case exists. A base case and downside case both exist. Both are internally consistent: the cost structure in the downside reflects a plausible management response to lower revenue. Three internally consistent scenarios with documented probability weights. Sensitivity analysis conducted on the three most material assumptions.

Domain 3 of 6 · Capital Structure

7. Which statement most accurately describes the company's cap table?

No formal cap table exists. A cap table exists recording issued shares only. SAFEs, convertible notes, and option grants are not reflected. A fully diluted cap table exists reflecting issued shares, all outstanding SAFEs and convertible notes, and all granted options. The ungranted pool reserve may not be included. A fully diluted cap table including all instruments and the ungranted pool reserve. Carries a record date. Updated within five business days of any equity transaction.

8. How are outstanding SAFEs and convertible notes modeled?

The company has not issued any SAFEs, convertible notes, or other convertible instruments. Outstanding convertible instruments exist but are not modeled in the cap table. SAFEs and notes are listed with principal amounts, caps, and discount rates. Conversion share count is not calculated. Conversion share count is calculated at the cap-based conversion price only. Each instrument modeled at both cap-based and discount-based conversion price. Lower applied. MFN adjustments documented and reflected.

9. Has the company conducted a waterfall analysis?

The company has no institutional equity holders with liquidation preference terms. No waterfall analysis exists. A basic exit distribution has been sketched informally showing founder proceeds at one exit value. A waterfall analysis models proceeds across a minimum of three exit values, reflecting the liquidation preference structure. A waterfall analysis across ten or more exit scenarios, reflecting all preference terms, anti-dilution adjustments, and conversion thresholds.

Domain 4 of 6 · Valuation

10. Has the company conducted a formal valuation analysis?

No formal valuation analysis exists. The valuation is a negotiated figure with no analytical basis. A verbal or informal valuation rationale exists but it is not documented. A documented valuation analysis exists using at minimum one methodology appropriate to the company's stage. Two or more methodologies applied and cross-referenced. A valuation range produced with sensitivity analysis on the key assumptions.

11. Is the valuation analysis documented and current?

No documentation exists. Documentation exists but is more than twelve months old or predates a material change in the company's financial position. Documentation exists and was updated within the last six months. Documentation updated within three months, reflects the current peer set and market conditions, and includes a stated range with methodology and key assumptions.

Domain 5 of 6 · Investor Readiness

12. What is the current state of the financial data room?

No data room exists. Financial documents are in various locations with no organized structure. Documents exist and are organized in a shared folder but there is no data room index and documents may not be current. A structured data room exists with an index. The investor-grade financial model, management accounts, cap table, and financial summary are present and current. A complete data room meeting Level 2 FFI Standard requirements is maintained continuously. Shareable within forty-eight hours of request.

13. Can the founding team state the company's key financial metrics without consulting documents?

Key metrics are not consistently tracked. Documents would be required to answer basic financial questions in an investor conversation. Core metrics such as revenue and cash balance are known but secondary metrics require document consultation. Core metrics including net burn rate, runway, gross margin, and ARR or revenue run rate are known by the founding team at all times without consultation. All relevant metrics including unit economics, net revenue retention, cohort data, and variance against plan are known and can be stated precisely in a live investor conversation.

14. Are financial figures consistent across all investor materials?

No investor materials exist. Investor materials exist but the figures across the pitch deck, financial model, and data room have not been verified for consistency. All figures across investor materials are verified against the same version of the financial model before each investor conversation. A formal narrative consistency check is conducted before each investor process. All materials derive from the same source financial model.

Domain 6 of 6 · Strategic Financial Planning

This domain is weighted at zero for Inception and Pre Seed stage companies. Answer based on the current state.

15. Does the company operate against a formal annual operating plan?

No annual operating plan exists. A budget exists but it is not used as an accountability reference. Variance is not regularly reported against it. An annual operating plan exists approved by the board or founding team. Monthly variance is reported and explained in writing for material deviations. An annual operating plan exists with monthly variance reporting and commentary. A separate rolling forecast is maintained as the probability estimate and not conflated with the budget.

16. Does the company maintain departmental financial plans?

No departmental financial tracking exists. Informal cost center tracking exists but is not integrated with the financial model. Departmental budgets exist and are reported against monthly. Full departmental financial plans with headcount at fully loaded cost, monthly variance reporting, and a documented KPI framework with named metric owners and thresholds.