The short answer
After seed or Series A, one thing changes for a startup above all: there are now investors who expect numbers on a regular basis, and a budget that has to last until the next round. In the first 90 days you should set up five things: fixed investor reporting, a budget with plan-versus-actual comparison, an honest runway calculation, an up-to-date cap table and clear ownership in finance. Get this done early and you go into the next round with numbers nobody has to explain.
This article is for founders after closing and for investors who want to give their portfolio companies a roadmap. Private-equity deals follow a different pattern: the first 100 days after a PE closing.
Why the first 90 days matter
The money comes with obligations. The investment agreement usually sets out which information investors receive and when: monthly figures, quarterly reports, annual accounts, budget. These obligations apply from the first month, not once the team has time. At the same time the clock starts ticking for the next round. What you set up cleanly now ends up in the data room of your next financing in 12 to 24 months.
Day 1 to 30: settle the basics
- List your information obligations. Which reports do you owe to whom, by when and in what format? Read the investment agreement and the articles, not just the term sheet. Result: one calendar with all deadlines.
- Update the cap table. New shares, converted loans, employee participation schemes: everything in one table that matches the commercial register and the notarial deed.
- Check the chart of accounts. Bookkeeping has to show costs the way you want to report them, for example by team, product or channel. Rebuilding it later is expensive.
- Assign ownership. Who is responsible for the numbers internally? Who handles bookkeeping, payroll and tax? Who approves payments? After the first big round this is often still the founder.
Day 31 to 60: budget and runway
- Turn the pitch plan into a budget. The plan in the pitch deck was a sales argument. Now it becomes a monthly budget with hires, marketing spend and expected revenue.
- Introduce plan versus actual. Every month, budget and actual figures side by side, with a short explanation of larger variances. That is all you need at the start.
- Calculate runway honestly. How many months does the money last at your actual burn, not the planned one? Include a scenario without revenue growth. For short horizons, a 13-week cash flow forecast helps.
- Fix your metric definitions. Decide how you calculate revenue, recurring revenue, churn and customer acquisition cost. Define once, then do not change.
Day 61 to 90: build the routine
- Speed up the monthly close. Aim for a close within ten working days after month end. See our article on closing backlogs and fast close.
- Standardise the investor update. Always the same structure: three sentences on the situation, metrics, plan versus actual, runway, where you need help. Investors prefer a short, regular update to a long, rare one.
- Keep grants and tax in view. Deadlines for grants, R&D tax credits and tax returns belong in the same calendar as investor reports.
- Start the data room for the next round. File every monthly close, contract and set of minutes the same way. That way the data room grows as you go.
What investors expect in this phase
Most investors do not expect perfect controlling after the first round. They expect reliability: numbers on the agreed date, the same definitions month after month and early warning when runway gets shorter than planned. An honest update with bad numbers builds more trust than a late one with polished numbers.
Common mistakes
- Bookkeeping runs three months behind. Then every investor update is based on estimates.
- Metrics change their definition. Calculate differently every month and you lose comparability and trust.
- Hiring ahead of the budget. Headcount is the biggest cost block. Hire faster than planned and runway shrinks without anyone noticing.
- Finance stays a side job for the CEO. That works for a while. By the next round at the latest, the time runs out.
When outside support makes sense
If nobody in the team has time for these tasks, an experienced finance partner on a temporary basis pays off. nugrow supports venture-backed startups with an interim CFO or finance team for VC-funded companies. Scope and duration depend on the situation. Investors who want a startup reviewed before investing will find our startup due diligence offer.
Discuss your post-round finance set-up with Sebastian Janus
Frequently asked questions
Which reports does a startup owe its investors?
That is set out in the investment agreement. Common are monthly or quarterly figures, an annual budget and the annual accounts. Some agreements also require specific metrics or consent for larger expenditures.
How often should an investor update go out?
Monthly is common and sensible for startups after seed or Series A. More important than the frequency is that date and structure stay the same.
Does a startup need its own CFO after Series A?
Not always right away. Often an experienced part-time or interim finance lead who sets up budget, reporting and bookkeeping is enough. A permanent CFO usually makes sense before Series B or with more complex structures.
What is the most common mistake after closing?
Bookkeeping falls behind. Then reliable monthly figures are missing, and budget, runway and investor update are based on estimates.
When should preparation for the next round start?
Right after closing. If you file closes, contracts and minutes in order from the start, you do not have to rebuild a data room before the next round.
