You really believe asking for projections is that invalid of a request? Why so?
I think it’s great that seed investors ask for financial projections. It’s one of the most reliable signals for founders to quickly disqualify investors who don’t belong on their cap table.https://twitter.com/HarryStebbings/status/1155183001975873537 …
I am just bewildered that early stage investors still today ask seed stage startups for 3-5 year financial plans and projections.
I mean what, are you serious?! 
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Because it’s impossible to project, and therefore a waste of the founder’s time, and also can cause founders to stick to plans that don’t make sense due to commitment bias.
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I ask frequently and find it super valuable. Projections show: - how founders think about growing their business - whether the fundraising plan is realistic - what the key levers are in the business - how founder takes feedback on the projections
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Burn or top line?
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I’m with
@lpolovets on this - it’s a great way to learn what they’re thinking and how they plan to achieve it. 3-5 is a lot, so maybe 1-2. But to disqualify an investor bc they asked a practical question of how you’ll spend their $? That’s crazy. -
Asking a question ≠ asking for financial projections
End of conversation
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disagree. Most companies need to start generating revenue by the time they raise their Series A, so they need to have a game plan for how to achieve that.
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You can have a game plan for generating revenue without a made up Excel model with projections.
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Respectfully completely disagree. Projections are a super useful exercise for understanding dynamics of the business. Also can have big impact on product. Ex: “Onboarding customers is too expensive, let’s automate uploads.”
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