Fundraising Readiness Assessment | Bootspring Docs

The Readiness Assessment workflow helps you determine if your startup is ready to raise venture capital. This systematic evaluation covers timing, metrics, team, and market factors to help you make an informed decision about when to start fundraising.

Overview#

Property	Value
Components	4 (Timing, Metrics, Team, Market)
Tier	Free
Typical Duration	1-2 weeks for assessment
Best For	Pre-seed through Series A founders

Outcomes#

A successful readiness assessment delivers:

Clear understanding of your current position
Identification of gaps to address before fundraising
Realistic timeline for raise preparation
Benchmarks to discuss with potential investors
Action plan to improve fundability

The Readiness Scorecard#

Rate yourself on each dimension (1-5) to calculate your overall readiness:

┌─────────────────────────────────────────────────────────────┐
│                  FUNDRAISING READINESS                       │
├─────────────────────────────────────────────────────────────┤
│  TIMING (25%)        │  Score: __/5  │  Weight: __/25       │
│  METRICS (30%)       │  Score: __/5  │  Weight: __/30       │
│  TEAM (25%)          │  Score: __/5  │  Weight: __/25       │
│  MARKET (20%)        │  Score: __/5  │  Weight: __/20       │
├─────────────────────────────────────────────────────────────┤
│  TOTAL SCORE: __/100                                        │
│                                                             │
│  80+: Ready to raise                                        │
│  60-79: Address gaps first                                  │
│  <60: Continue building before raising                      │
└─────────────────────────────────────────────────────────────┘

Dimension 1: Timing Indicators (25%)#

Financial Runway#

Score	Runway Remaining
5	12+ months
4	9-12 months
3	6-9 months
2	3-6 months
1	< 3 months (danger zone)

Best Practice: Start fundraising with 9+ months of runway. Raising takes 3-6 months on average.

Business Momentum#

Score	Indicator
5	Revenue growing 20%+ MoM consistently
4	Revenue growing 10-20% MoM
3	Stable revenue or strong user growth
2	Flat metrics with clear path to growth
1	Declining metrics

Market Timing#

Score	Indicator
5	Hot market, investors actively seeking deals
4	Active market with recent comparable raises
3	Normal market conditions
2	Cooling market, investors cautious
1	Bear market, funding very difficult

Timing Checklist#

Have you achieved a significant milestone since last raise?
Is your growth trajectory compelling (up and to the right)?
Do you have a clear use of funds for next 18-24 months?
Are you in a mental state to handle 3-6 months of rejection?
Is your co-founder team aligned on terms and dilution?

Dimension 2: Metrics Benchmarks (30%)#

Stage-Specific Benchmarks#

Pre-Seed ($500K-$2M raise):

Metric	Target
Problem validation	Customer interviews completed
MVP	Working prototype
Early users	10-100 beta users
Revenue	$0-$10K MRR (nice to have)

Seed ($2M-$5M raise):

Metric	Target
Product	Launched, users engaged
Revenue	$10K-$100K MRR
Growth	15-20% MoM
Users	500-5,000 active
Retention	D30 > 20%

Series A ($10M-$20M raise):

Metric	Target
Revenue	$100K-$500K+ MRR
Growth	15-20% MoM sustained
Net Revenue Retention	>100%
CAC Payback	<12 months
PMF Score	>40%

Metrics Assessment#

// Calculate metrics readiness score
function assessMetrics(stage: 'pre-seed' | 'seed' | 'series-a', metrics: Metrics) {
  const benchmarks = {
    'pre-seed': {
      mrr: { target: 0, weight: 0.1 },
      users: { target: 50, weight: 0.3 },
      interviews: { target: 30, weight: 0.4 },
      mvpComplete: { target: true, weight: 0.2 },
    },
    'seed': {
      mrr: { target: 30000, weight: 0.3 },
      growth: { target: 0.15, weight: 0.3 },
      retention: { target: 0.20, weight: 0.2 },
      users: { target: 1000, weight: 0.2 },
    },
    'series-a': {
      mrr: { target: 200000, weight: 0.25 },
      growth: { target: 0.15, weight: 0.25 },
      nrr: { target: 1.0, weight: 0.25 },
      cacPayback: { target: 12, weight: 0.25 },
    },
  };

  // Score against benchmarks
  // Return weighted score out of 5
}

Metrics Checklist#

Do you know your core metrics (MRR, growth, retention)?
Can you explain your unit economics (CAC, LTV)?
Do you have a metrics dashboard investors can review?
Can you show month-over-month trends?
Are your metrics in line with stage benchmarks?

Dimension 3: Team Assessment (25%)#

Founder Evaluation#

Factor	Score 5	Score 3	Score 1
Domain expertise	10+ years in space	Some relevant experience	New to the space
Technical ability	Can build core product	Can guide technical team	Need to hire tech lead
Previous startup	Successful exit	Startup experience	First-time founder
Network	Strong investor/advisor network	Some connections	Building from scratch
Commitment	Full-time, all-in	Full-time	Part-time

Team Composition#

Ideal founding team:

Technical co-founder who can build the product
Business co-founder who can sell and fundraise
Domain expertise in your target market
Complementary skills with low overlap
Previous working relationship

Team Gaps Analysis#

Role	Status	Priority
CEO/Business	[ ] Filled	Critical
CTO/Tech	[ ] Filled	Critical
First Engineer	[ ] Filled	High
Design	[ ] Filled	Medium
Sales/Marketing	[ ] Filled	Medium

Team Checklist#

Do you have a technical co-founder (or equivalent)?
Is your team full-time and committed?
Do you have relevant domain expertise?
Can you articulate why this team will win?
Have you worked together before?

Dimension 4: Market Analysis (20%)#

TAM/SAM/SOM Framework#

┌─────────────────────────────────────────────────────────────┐
│                                                             │
│     ┌─────────────────────────────────────────────────┐     │
│     │               TAM: $50B                          │     │
│     │    Total Addressable Market                      │     │
│     │    (Everyone who could use your product)         │     │
│     │                                                  │     │
│     │     ┌─────────────────────────────────────┐     │     │
│     │     │          SAM: $5B                    │     │     │
│     │     │   Serviceable Addressable Market    │     │     │
│     │     │   (Realistic target segment)        │     │     │
│     │     │                                     │     │     │
│     │     │     ┌─────────────────────────┐     │     │     │
│     │     │     │      SOM: $500M          │     │     │     │
│     │     │     │  Serviceable Obtainable │     │     │     │
│     │     │     │  (What you can capture) │     │     │     │
│     │     │     └─────────────────────────┘     │     │     │
│     │     └─────────────────────────────────────┘     │     │
│     └─────────────────────────────────────────────────┘     │
│                                                             │
└─────────────────────────────────────────────────────────────┘

Market Size Requirements#

Stage	Minimum SAM
Pre-seed	$1B+
Seed	$2B+
Series A	$5B+

Competitive Positioning#

Factor	Strong	Weak
Differentiation	Clear, defensible moat	Me-too product
Timing	Market tailwinds	Market headwinds
Competition	Fragmented or no dominant player	Well-funded incumbent
Entry barriers	Creating barriers	Low barriers

Market Checklist#

Is your market large enough ($1B+ SAM)?
Can you articulate your differentiation?
Do you understand your competitive landscape?
Are there market tailwinds working in your favor?
Can you explain why now is the right time?

Overall Assessment#

Interpreting Your Score#

80-100: Ready to Raise

Strong position across all dimensions
Begin fundraising preparation immediately
Focus on materials and targeting

60-79: Address Gaps First

Solid foundation but clear gaps
Spend 1-3 months strengthening weak areas
Consider bridge funding if runway is short

40-59: Continue Building

Significant gaps in readiness
Focus on product-market fit and metrics
Revisit assessment in 3-6 months

<40: Not Ready

Major work needed before fundraising
Focus on fundamentals (product, users, revenue)
Consider alternative funding (bootstrapping, grants)

Action Plan Template#

## Fundraising Readiness Action Plan

### Current Score: __/100

### Priority Gaps (address before raising):
1. [Gap 1] - Action: [Specific steps]
2. [Gap 2] - Action: [Specific steps]
3. [Gap 3] - Action: [Specific steps]

### Timeline:
- Month 1: [Focus area]
- Month 2: [Focus area]
- Month 3: [Begin fundraising prep / Re-assess]

### Key Milestones:
- [ ] [Milestone 1] by [Date]
- [ ] [Milestone 2] by [Date]
- [ ] [Milestone 3] by [Date]

Recommended Agents#

Phase	Agent	Purpose
Metrics	analytics-expert	Metrics tracking and dashboards
Financials	financial-expert	Unit economics analysis
Market	research-expert	TAM/SAM/SOM analysis
Strategy	strategy-expert	Positioning and timing

Deliverables#

Deliverable	Description
Readiness scorecard	Scored assessment across all dimensions
Gap analysis	Identified weaknesses with priorities
Action plan	Specific steps to improve readiness
Metrics dashboard	Current state of key metrics
Market analysis	TAM/SAM/SOM with sources

Best Practices#

Be honest with yourself - Investors will find gaps anyway
Talk to investors early - Get feedback before formally raising
Focus on fundamentals - Product and customers first
Build relationships - Start networking before you need money
Know your numbers - Investors expect you to know your metrics cold

Common Pitfalls#

Raising too early - Without traction, terms will be unfavorable
Raising too late - Running out of runway limits options
Overestimating market size - Unrealistic TAM damages credibility
Underestimating timeline - Fundraising takes longer than expected
Not knowing your metrics - Instant credibility killer

When NOT to Raise#

Consider alternatives to VC if:

Market is too small for VC returns
You want to maintain control
Business can be profitable quickly
You're not ready for VC expectations
Lifestyle business is the goal

Materials Preparation - Build your pitch deck
Investor Targeting - Find the right investors
Product-Market Fit - Validate PMF first
Metrics Dashboard - Track your numbers