Raising Money for a Startup: Questions to Ask an Adviser

Good startup funding advice does not start with "how do I find investors". It starts with whether you should raise money at all, how much, from whom and on what terms. A short conversation with an adviser who has raised or invested before can save you months of chasing the wrong route. This guide sets out the questions to ask in that conversation, so you get specific, usable answers instead of general encouragement. It is part of our series on getting business advice online.

Before the session: know your numbers

An adviser can only be as specific as the information you bring. Prepare:

• Monthly revenue and costs for the last six months, or a realistic forecast if you have not launched.
• How much cash you have and how many months it lasts at current spend.
• What the money would be spent on, in three or four lines.
• Your current ownership split and any money already borrowed or invested.

If you have not yet tested demand, pause the funding question and read our guide to validating a business idea first. Investors fund evidence, not plans.

Question 1: Do I actually need to raise money?

Many founders assume investment is the default route. It is not. Ask the adviser to challenge your plan: could the business grow from revenue if you cut spending or changed the pricing? Could a customer pre-pay? Could you reach the next milestone with £15,000 rather than £150,000?

Raising equity means selling part of the company permanently. If the business can fund itself, that is usually the better answer, and an honest adviser will say so.

Question 2: Which funding route fits my stage?

The main options in the UK, and what each suits:

Route	Typical stage	What you give up
Founder savings, friends and family	Pre-launch	Personal relationships if it goes wrong
Start Up Loans and bank lending	Trading or near to it	Repayments regardless of performance
Grants and innovation funding	Specific sectors, often R&D	Time spent on applications and reporting
Angel investors	Early revenue or strong evidence	Equity, usually 10–25% in a first round
Venture capital	Rapid growth with a large market	Larger equity stake and board influence
Crowdfunding	Consumer products with an audience	Public exposure, many small shareholders

Ask the adviser which two routes are realistic for your business right now, and why the others are not. The government's business finance and support pages list current schemes, including Start Up Loans and regional growth funds.

Question 3: How much should I raise, and what milestone does it buy?

A round should fund the business to a clear, provable milestone with some margin for delays. Ask the adviser to help you work backwards:

1. What milestone makes the next round, or profitability, easy to justify?
2. What does reaching it cost, month by month?
3. Add 20–30% contingency.

Worked example: a software founder wants to raise £400,000. The adviser asks what the money buys. The answer is two developers and a marketing hire for 18 months, reaching roughly £20,000 monthly recurring revenue. The adviser points out that £20,000 a month is not a compelling Series A story, and that the same team for 12 months, aiming for £15,000 a month plus three enterprise contracts, is a stronger milestone at £280,000. The founder raises less, gives away less equity and has a clearer pitch.

Question 4: What will investors want to see from me?

Ask for a plain list. At early stage, it usually includes:

• Evidence that people pay: revenue, pre-orders, signed letters of intent.
• A credible explanation of why your team can execute.
• Unit economics: what it costs to acquire a customer and what that customer is worth.
• A clear use of funds tied to milestones.
• A short deck and a one-page summary.

Ask the adviser to review your deck in a follow-up session. Our guide to a business plan review explains what a good review looks like.

Question 5: What are the terms I should understand before signing?

Even founders who are comfortable with numbers get caught by terms. Ask the adviser to explain, in your context:

• Valuation and dilution: what percentage you keep after this round and the likely next one.
• Preference shares and liquidation preferences: who gets paid first if the company is sold for less than hoped.
• Investor consent rights: which decisions you can no longer make alone.
• SEIS and EIS eligibility: UK tax reliefs that make your company more attractive to angels. HMRC's guidance on venture capital schemes explains the conditions.

An adviser is not a substitute for a solicitor when you reach a term sheet. But understanding the terms before you negotiate stops you agreeing to something you do not understand.

Question 6: What mistakes do you see founders make at my stage?

This is often the most valuable question. Common answers:

• Raising too early, before there is evidence, and spending six months on investor meetings instead of customers.
• Taking money from investors who do not understand the sector and then clash on strategy.
• Setting a valuation so high in round one that round two becomes impossible.
• Giving away 40% to a "co-founder" who contributes little.
• Ignoring grant funding because the application looks tedious.

Ask what the adviser would do in your position, and what they would avoid.

Getting the most from a consultation

A 30-minute session is enough for two or three of these questions if you send your numbers in advance. A 60-minute session covers the full set. On ConsultChat you can choose an adviser with a track record in your sector, book by chat or video, pay at booking and read reviews from founders who have completed sessions with them.

Be specific about what you want at the end of the session: a recommended route, a target raise figure, a list of what to fix in the deck. Advisers give better startup funding advice when they know what decision you are trying to make.

Raising money is a means, not a goal. Good startup funding advice will sometimes tell you not to raise at all, and that is worth paying for. For more on finding the right expert, see our hub on business advice online, or create a free ConsultChat account to book a session with a funding adviser.