A capital fundraising plan (CFP) is a tool that combines a business operational plan with a funding needs assessment to determine how much investment capital is needed, when it is needed, and how to think about valuation. Developing a CFP involves identifying key business milestones, determining resource needs and costs for each milestone, and assigning reasonable valuation ranges for reaching each milestone to structure an investment proposition for investors. The CFP helps entrepreneurs secure funding and negotiate terms more effectively.