Startup Quiz: Financial Health

A well-organized data room is the foundation of a successful fundraising process, serving as your company's single source of truth for investors and setting the tone for professional due diligence. This comprehensive checklist outlines the essential documents and materials you'll need to compile, organize, and maintain throughout your fundraising journey. From corporate formation documents to detailed financial models, this guide ensures you'll be thoroughly prepared for investor scrutiny while demonstrating the maturity and transparency that sophisticated investors expect.

Financial Health Quiz
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Growth Stage Financial Health Assessment

About the Quiz

The Growth Stage Financial Health Assessment is an interactive quiz designed to evaluate the financial health of growth-stage companies across five key dimensions:

Growth Metrics

  • Measures year-over-year revenue growth and annual recurring revenue (ARR)

  • Evaluates if the company is growing at rates typical for its stage

Capital Efficiency

  • Looks at burn multiple (how much cash spent per dollar of new ARR)

  • Assesses cash conversion (ARR generated relative to funding raised)

  • Helps determine if capital is being used effectively

Unit Economics

  • Examines customer lifetime value to customer acquisition cost ratio (LTV/CAC)

  • Measures how quickly customer acquisition costs are recovered

  • Shows if the basic business model is profitable

Revenue Quality

  • Evaluates net revenue retention (how well you keep and grow existing customers)

  • Looks at gross margins

  • Indicates the sustainability and scalability of revenue

Cash Management

  • Assesses runway length at current burn rate

  • Evaluates sophistication of cash management processes

  • Shows how well prepared the company is for various scenarios

Scoring System

Each question has four possible answers, scored 0-3 points

  • 0 points = needs significant improvement

  • 1 point = below benchmark but acceptable

  • 2 points = meets typical benchmarks

  • 3 points = exceeds benchmarks

Maximum score per category is 6 points (2 questions × 3 points)

Total maximum score is 30 points (5 categories × 6 points)

Overall Health Assessment Levels:

  • Excellent (80%+ of total points): Strong performance across most metrics

  • Good (60-79%): Solid performance with some room for improvement

  • Fair (40-59%): Several metrics need attention

  • Needs Improvement (Below 40%): Significant improvements needed

Contact Marion Street Capital to discuss how our FinOps expertise can help your growth stage company raise capital.