Explain why you need the funds, sources of your funds, and what the funds will be used for.  Give as much detail as you can for how the money will be used.  Most common uses for funding include R&D, working capital, and purchase of equipment.

Example:

iWidget intends to raise $3.5 million in this third round of financing.  This round of finance will address a number of needs, including development of additional software products,  expansion of the company’s marketing function, and  introduction of new products to the marketplace.