How to use this checklist
This checklist suits subscription software businesses where AI is part of the core product.
Work through each list before you contact investors. Anything you cannot tick is either a task to finish or a risk to explain openly in your pitch.
1. Company and legal basics
These apply to every company raising money, but gaps here slow rounds more than almost anything else.
- Up-to-date cap table showing every shareholder, option and convertible.
- Signed IP assignments from all founders, staff and contractors.
- Articles of association and any shareholder agreement to hand.
- SEIS or EIS advance assurance applied for, if you are raising from UK angels.
- Company filings at Companies House up to date.
2. SaaS proof points
The evidence investors in this sector look for first.
- Recurring revenue separated from setup fees and services.
- Net revenue retention by cohort with reasons for expansion.
- Pricing that grows with usage or outcomes.
- Customer references willing to speak to investors.
3. Numbers and financial model
Your model should show how the money you raise gets you to the next milestone.
- Gross margin after inference and hosting.
- Cost to win a customer and time to pay it back.
- Monthly growth over recent months.
- Profitability of your heaviest AI users.
4. Data room documents
Have these organised in one shared folder before the first meeting.
- Monthly recurring revenue reports.
- Customer contracts and renewal dates.
- Cohort retention exports.
- Security documentation and certifications, if held.
5. Pitch and investor readiness
Readiness is also about how you run the process.
- A short deck that states the problem, customer, traction and ask in the first few slides.
- A clear amount to raise and a list of what it pays for.
- A target list of investors who back your sector and stage.
- A one-paragraph answer to 'why now?'.
Red flags to fix before you pitch
Investors often stop at these issues:
- One-off fees counted as recurring revenue.
- Churn hidden by new customer growth.
- Flat pricing with loss-making heavy users.
- Margin reported before model costs.
SaaS readiness: ready versus common gap
| Area | Ready when | Common gap |
|---|---|---|
| Revenue | Recurring only, reported monthly | Mixed with one-off fees |
| Retention | By cohort with reasons | Logo churn only |
| Pricing | Tracks usage and value | Flat per seat |
| Margin | After inference | Model costs excluded |
Questions to prepare before you pitch
- How much of our revenue is truly recurring?
- Why do customers expand?
- Are our heaviest users profitable?
- What is our margin after model costs?
How KJ Enterprises evaluates saas businesses
KJ Enterprises backs AI SaaS businesses with sticky recurring revenue and healthy margins after model costs, informed by the SaaS products AutoThink Group operates.
If that describes your company, you can apply for investment. Related reading: the complete funding guide and the step-by-step how-to and costs and terms and the edtech checklist.