IWhen investing in a startup, what investors really want to know is: “Where is my money going?”
Having a clear and well-structured plan for how the funds will be used can be the key difference between a lukewarm round and a successful one.
🧭 Why Does the Use of Funds Matter So Much?
Transparency is the foundation of trust. When you present a fund allocation plan by area — such as marketing, technology, legal, team, and cash reserve — the investor feels reassured. They understand the money will be used strategically to grow the company.
Additionally, clarity in fund usage shows that you have business vision, founder maturity, and a strong commitment to execution.
🧩 Which Areas Should Be Included in the Plan?
At iSelfToken, we suggest including the following pillars in your plan:
- Product or technology development
- Marketing and customer acquisition
- Legal and accounting
- Infrastructure and tools
- Strategic compensation for the team or founders
- Cash reserve for emergencies or expansion
You can present this data as a chart, plain text, or a simple spreadsheet. The key is to clearly indicate the approximate percentage allocated to each area.
💡 Pro Tip: Link Fund Usage to Expected Results
If you’re investing 30% in marketing, show that you expect to grow your lead base 10x. If you’re putting 20% into technology, explain how that will accelerate product development. Investors appreciate logic.
📈 How Does iSelfToken Support This?
During your startup’s onboarding process, you’ll be invited to fill in this information with platform guidance. And more: if your startup is in its early stages, part of the funds can be directly transferred to iSelfToken’s strategic partners — ensuring the capital is well used from the start.
✅ Conclusion
Presenting a clear plan for how the funds will be used is one of the most effective ways to build trust and attract investors. Show that you know what to do with the capital you’re requesting — and watch your fundraising gain momentum.
Start structuring your fundraising intelligently now: www.iselftoken.com
