What Do Investors Look for in Financial Projections?
Financial projections are a critical part of any investor pitch. Investors scrutinize these to assess the startup's potential for profitability and growth. Key elements include revenue forecasts, which should be realistic and based on solid assumptions. Expense projections should be detailed, accounting for all operational costs. Investors also look for cash flow statements to understand how the business manages its cash and plans for future financial stability. Additionally, break-even analysis is important as it indicates when the startup expects to become profitable. Transparency and accuracy in these projections are vital for building investor trust.