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 …
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Both. Top line is basically impossible to predict, but still shows levers/assumptions/how people reply to feedback.
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Early stage financials should be very simple: - How long do you develop before selling - What is your fixed staff/expenses - What are unit economics - When do you expect to be raising next - What’s your estimate for cash flow positive You should also do a stock budget.
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Revenue projections are useless. Cost projections for pre-A companies, mainly non-Saas, are moderately useful for companies selling units of things, less so for SaaS. It's important a founder has a sense of economic realities showing they've studied the problem.
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"a sense of economic realities" is a great way to phrase this :)
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