Yet many companies continue approaching Series C and D-fundraising with the same mindset and methods they used for earlier rounds, when markets were more consistently buoyant. This is a costly mistake. Particularly in today’s environment, securing growth-stage investors requires a fundamentally different approach to preparation: more intensive, structured, realistic, and rooted in proven execution rather than ambitious promises alone.

Below, we outline how fundraising at Series C and D differs from earlier rounds, why deeper preparation at this stage is essential, and the practical steps companies should take to successfully close these growth rounds.

Why rigorous preparation is non-negotiable

The fundraising environment today is vastly different from the high-liquidity conditions of 2021-22. Capital is scarcer, investors more cautious; market conditions that demand a much higher standard of proof for claims of growth and future potential.

"Companies aiming to successfully raise a Series C round should prepare as if they're raising a Series D or even E-round. Over-preparation is no longer an advantage – it is essential for success."

This means actively anticipating every possible investor concern, meticulously validating all claims with data, and presenting a comprehensive, credible case to investors long before fundraising formally begins. It also means ‘selling’ that comprehensive story first at a high level, then in more granular detail staging the release of information that supports the overarching anchors of the go-forward plan. This is fundamentally different than a ‘hockey stick’ forecast backed by a set of assumptions, all of which ‘make sense.’ The fundamental difference: an entirely deeper level of rigor packaged in a way that supports the overall story. 

Why series C and D investors demand more rigorous preparation

Fundraising isn't a linear progression. At Series C and D, companies encounter a significant shift in investor expectations, reflecting a transition from venture-stage to growth-stage investment. This shift is crucial:

• Different Investors: series C/D investors are primarily growth equity funds, not traditional venture capital. These investors perform deeper, more structured due diligence, placing high emphasis on actual performance rather than future potential alone. Specifically for international growth companies, the vast majority of these investors are US-based, raising the bar for the degree of ‘completeness’ required in any C/D investment proposition
• Greater Scrutiny on Execution: growth investors closely assess execution capabilities and past performance. They're not betting on unproven innovations or transformations; they prefer businesses that clearly demonstrate incremental, predictable growth
• Expectations of Proven Metrics: growth rounds demand precise, credible metrics (CAC, LTV, margins, growth efficiency) backed by rigorous and transparent data. Investors critically analyse these metrics to validate the robustness of the business

While these transition elements are understandable, teams often underestimate the level of detail required to ‘prove out’ each and every element convincingly. Companies that do not grasp and adjust for these differences risk disappointing investors, prolonged fundraising processes, and diminished valuations.

Practical steps for companies to successfully prepare

The following steps reflect the rigorous preparation required to successfully raise Series C and D rounds, drawing on extensive experience from our own growth-stage fundraising engagements:

1. Develop credible, conservative financial forecasts

Why it matters: investors prefer believable plans they trust that companies can meet or exceed, rather than overly ambitious growth projections that risk disappointment.

Action steps: prepare forecasts that realistically model future growth based on proven performance, clear market data, and existing execution capacity. Emphasise predictable revenue streams, clear paths to profitability, and achievable expansion plans.

2. Build a fully capable, incentivised management team

Why it matters: investors evaluate team readiness and depth carefully, looking beyond charismatic founders to assess overall leadership strength and succession plans. Often the level just below the C-suite also receives unusual scrutiny at this stage

Action steps: conduct a thorough assessment of the senior leadership team, addressing gaps proactively. Ensure meaningful equity incentives align interests and retain key executives through future dilution. Clearly demonstrate succession options beyond the founder

3. Rigorously validate and frame key metrics

Why it matters: metrics like customer acquisition cost (CAC), customer lifetime value (LTV), and margin structure become core indicators for investment decisions at Series C and D. Also, how companies calculate these, and defend their calculations, can make or break a round moving to close.

Action steps: audit and refine your metrics thoroughly before fundraising. Clearly justify your calculation methodologies and align these with accepted industry standards. Be transparent – investors value openness in understanding business performance.

4. Sustain proactive investor communication (at least 12 months before raising)

Why it matters: investors want confidence in your trajectory and execution ability long before formally evaluating your deal.

Action steps: begin consistent and structured outreach (monthly or quarterly updates) to potential investors at least a year ahead. Communicate clear milestones and achievements, building familiarity and confidence before initiating formal fundraising.

Understanding dual-track considerations

Companies reaching Series C or D scale are often attractive to potential buyers, raising the question of whether to pursue growth financing or consider an exit. Although genuine dual-track processes (pursuing growth capital and acquisition simultaneously) are relatively rare – usually companies have a clear primary objective – it’s important to acknowledge this possibility. In many cases, we find companies benefit from exploring M&A options in a limited way, and C/D investors take natural comfort from knowing there is strategic interest that can be developed in due course to a successful exit.

Good growth-round preparation naturally positions your business favourably for future exit scenarios, providing strategic flexibility regardless of the immediate funding path chosen.

Raising your next round successfully

The most successful Series C and D fundraises today aren’t driven by optimistic visions alone, but by rigorous, meticulous preparation and proof of execution capability. Companies that internalise and act upon the clear differences at this stage – realistic forecasting, strong and incentivised management teams, validated metrics, and sustained investor communications – will stand out in a challenging funding environment.

Preparation, executed thoughtfully and early, not only increases your chances of successful funding but positions your business strongly for long-term strategic success and value creation.

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