At Arkam, we believe fundraising does not end when capital hits the bank. The period immediately after a raise is when founders have the opportunity to build stronger financial systems, reporting discipline and internal visibility before the next stage of growth begins.
This piece looks at why the first 100 days after a fundraise matter from a finance perspective, and how founders can use this window to strengthen investor communication, improve operating clarity and prepare better for future fundraising.
“How a Founder’s First 100 Days Post-Fundraise Should Look From a Finance POV
During my interactions with several founders over the past decade, one common mistake I have noticed is that they do not focus on the finance function early enough. In the first 100 days after a raise, finance discipline becomes an important part of founder fundraising strategy, because it shapes reporting, governance, cash visibility and future readiness.
Some critical areas founders often lose focus on:
1. Balancing bandwidth in business vs financial oversight
Prioritising product and customers is essential, but without strong financial management, founders often end up facing avoidable surprises. A last-minute rush to clean up the data room during the next round is never ideal. Your lawyer can tell you how much bandwidth later gets consumed in discussing warranties and indemnities because of tax notices, audit extensions, qualified audit reports and similar issues.
For founders navigating startup fundraising, clean financial hygiene after one round can make the next startup funding process much smoother.
2. Big4 vs Big6 vs homegrown CA firms
Without getting into this classic debate, the question founders should ask themselves is: what scale is the business operating at, and are they getting enough comfort from the checks and balances the auditor is asking for? The answer will usually be clear. The audit setup has to be commensurate with the size of the business.
As companies grow within the VC ecosystem, the quality of financial review and reporting becomes an important part of startup-investor relations.
3. P&L vs balance sheet: book profit vs cash profit
Founders sometimes focus too much on book profit or EBITDA, which can lead to receivables piling up and cash balances depleting in working capital. Having a weekly meeting in your calendar with your finance and sales teams on collections can prevent potential write-offs and provisions.
This is especially important because startup metrics are not only about growth. Cash conversion, receivables, working capital and runway are equally important indicators of business health.
4. Solely relying on the top 3 KPIs, with no monthly operating plan
Founders often review the top 3 KPIs, such as ARR, user growth and runway, regularly. However, spending a few hours each month on plan vs actuals with your finance team will help you understand key metrics like unit economics, customer acquisition cost, customer lifetime value and payback period. These insights are worth their weight in gold.
A strong monthly operating plan also improves investor communication, because it allows founders to share clearer updates backed by real operating data.
5. Ignoring fixed vs variable, capex vs opex, provision vs actual
This may sound bookish, but the earlier founders understand these terms, the better they can identify hidden costs and understand their impact on profitability. Only a good finance person can help avoid mis-estimating costs and prevent a distorted view of profitability. For example, the P&L impact of ESOP charges or capitalisation of intangible assets is often among the least planned large P&L items.
These details matter during fundraising, when investors assess not only growth, but also the quality, predictability and transparency of the numbers.
6. Too busy building the business to focus on monthly reporting
Timeliness and transparency are crucial for building trust with stakeholders. Even if stakeholders do not voice it directly, they value openness and clarity.
Monthly reporting should be treated as part of fundraising preparation, not a one-off exercise before the next round. Strong reporting builds credibility through the journey and reduces friction when new investors begin diligence.
Net-net, investing in a strong finance team is not like marketing spend, where you can draw a direct 1:1 correlation to output. The ROI is substantial, intangible and not immediate.”
For us, the larger lesson is that finance should not be treated as a back-office function that becomes important only before the next round. Strong financial hygiene, timely reporting, clear operating metrics and cash visibility all contribute to investor trust and better decision-making.
For founders, the first 100 days after a raise are not only about deploying capital. They are about building the financial discipline, reporting rhythm and stakeholder trust that can support the next phase of growth.
