Investment and working capital
How much money you need, and why "total investment" and "peak funding needed" can differ.
Fixed investment
Everything you buy once before opening, from every investment category you switched on, plus Pre-Operational Expenses. Foundation then adds a contingency for the unexpected: 10% by default, set on Investment Summary.
Working capital
A business needs cash to keep running while money comes in slowly: suppliers and staff are paid before customers pay. Foundation sizes this buffer as a number of months of operating costs:
working capital = yearly operating cost × months ÷ 12
Three months is a common starting point. Use more if your customers pay slowly or your first year ramps up gradually.
Total investment
total investment = fixed investment (with contingency) + working capital
This is the cash you need on day one.
Peak funding needed
If the business makes a loss in its early years, your cash position keeps falling after opening. Peak funding needed is the lowest point your cumulative cash reaches, measured from zero. It is never less than the total investment.
When the two differ, the peak is the amount to raise. Raising only the total investment would leave you short before the business turns cash positive.