Building Financial Projections For Startups

Creating startup financial projections is, despite some claims to the contrary, an essential part of the fundraising process. The key is to build an economic forecast that serves both the entrepreneurs and potential Investors. In this webinar, I cover all you need to know to make meaningful financial projections:

• Why it makes sense to build forecasts for startups
• What Angel Investors and Venture Capitalists are looking for
• A short but sweet “Finance 101” course focusing on startup financials specifically

The bottom line: your financial projections are the result of your strategic thinking, which you communicate via your pitch deck first, second with your spreadsheet.

Note: This post is part of an 8-part series designed to help Founders raise funds with Venture Capitalists. Make sure you read the other posts and watch the corresponding webinars. They tackle all the steps in the fundraising process, from VC-eligibility to contacting potential Investors, pitching VCs, negotiating term sheets and instruments such as SAFEs and Preferred Shares.

Main Take-Aways

Here are the main points I tackled in the video. You can click on the white dots in the player’s bar to access them faster.

• Why startups should build financial projections
• How VCs approach startups’ forecasts
• Key terms used in Venture Capital: cash burn, runway, fume date
• The output Investors want to see on your pitch deck’s Financials page
• The differences between income statements, balance sheets, and cash flow forecasts—and how VCs use them to evaluate your startup and funding ask
• How to build cash flow forecasts

Sources & Additional Content

You can find our previous webinars in this series here

Is Conducting Financial Projections a Waste of Time?, by Hala Ventures

Jason Lemkin on growth and financial indicators, on This Week in Startups

Why do VCs Really Want to See Your Financial Model?, by Micah Rosenbloom on Founder Collective

I hope you enjoy this webinar.

Let me know in the Comments section below about other sources I should include, and your own experience!

Aram Founder

Aram is a veteran investment professional with 20 years of experience. He’s realized over 45 transactions across Project Finance, LBO Financings, Growth Equity, Venture Capital, and M&A in half a dozen countries on three continents.

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Venture Capital Entrepreneurship Fundraising