Use of Proceeds
Definition
A documented allocation of capital raised in a funding round across functional categories and initiatives, specifying the amount allocated to each category, the deployment period, and the milestone the allocation is expected to achieve. Use of proceeds is a required component of investor reporting and data room documentation at Level 2 and above. It must be updated when material deviations from the original allocation occur.
Common Misapplication
The most common misapplication is providing use of proceeds at a high level of aggregation, such as product, sales, and operations, without specifying the specific initiatives or headcount plans within each category. High-level allocation categories cannot be tracked against actual deployment and do not provide management accountability.
FFI Standard Reference
This term is defined and applied in Book 3, Section 3.4: The Capital Allocation Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Use of Proceeds. https://ffistandard.org/glossary/use-of-proceeds/. 2026.