Fundraise

Track your funding events and see their impact on your cash and equity.

Every dollar you raise shapes your runway and your future. Profitual makes it easy to model and track your funding events — closed rounds and planned future raises.

Video Tutorial

Fundraise Tutorial

Funding Rounds Overview

The Fundraise building block shows all your funding events. Each entry shows the investment type, amount, and closing date. Click any funding event to see its details — Profitual highlights the impact each raise has on your Cash and Balance Sheet.

Investment Types

Type Description
Common Shares Standard equity, typically for founders and early employees
Preferred Shares Investor equity with liquidation preferences and other rights
Convertible Debt Debt that converts to equity at a future trigger event

Creating a Fundraising Event

  1. Navigate to Building Blocks → Fundraise in the sidebar
  2. Click + Add Event
  3. Choose the investment type — Common Shares, Preferred Shares, or Convertible Debt
  4. Fill in the form and click Save

Equity round example:

Name: Seed Round
Raise Type: Preferred Shares
Amount: $1,500,000
Closing Date: March 2024

Convertible Debt Example

Profitual allows you to forecast Convertible Debt rounds whether you have a known conversion date or not. When you select “Convertible Debt” as the raise type, additional fields appear:

Name: Bridge Round
Raise Type: Convertible Debt
Amount: $500,000
Closing Date: January 2024
Annual Interest Rate: 5%
Do you have a known Conversion Date?: Yes
Conversion Date: March 2025
Conversion Type: Preferred Shares

After adding a convertible debt funding event, Profitual highlights the interest accrual every month. If you don’t set a known Conversion Date, then the balance will remain in Convertible Debt and continue accruing interest throughout your statements. If you do set a Conversion Date, on that month you will see the initial Amount plus the accrued interest subtracted from Convertible Debt and added to the specified Conversion Type. In this example, Preferred Shares

Impact on Financial Statements

Balance Sheet

On the Balance Sheet, you’ll see the investment in the Equity section:

  • Common Shares and Preferred Shares appear directly in Equity
  • Convertible Debt appears in Liabilities until conversion, then moves to Equity

Cash Flow Statement

The investment appears as a cash inflow in Financing Activities when the round closes.

Types of Fundraising

Equity Rounds

Direct investment for ownership:

Round Typical Size Investors
Pre-seed $50K - $500K Angels, friends & family
Seed $500K - $3M Angels, seed funds
Series A $3M - $15M Venture capital
Series B+ $15M+ Growth equity, VC

Convertible Debt

Debt that converts to equity at a future date or funding round. Interest accrues monthly and converts along with the principal.

Common Use Cases

  1. Planning a Seed Round - Model expected raise to see runway impact
  2. Series A Scenarios - Compare $5M vs $8M raises
  3. Bridge Financing - Add convertible note between rounds
  4. Historical Rounds - Record past raises for accurate financial history