Preparing financial projections My strong recommendation is t | 🦄 Unicorn Mafia Startup

Preparing financial projections

My strong recommendation is to limit your time spent on this to the very minimum, e.g. 1 hour total. Today, especially in Silicon Valley, *3-year projections are no longer a common requiremement for pre-seed and seed fundraising*. If someone pressures you to have a financial model, you can respond with super basic stuff like this:

1 year: 5 people, spending $300k, revenue: 0
2 year: 10 people, spending $1M, revenue $50k, 2 pilots
3 year: 20 people, spending $2.5M, revenue $600k, 5 pilots, 2 multi-annual contracts

This the level of detail will suffice for most conversations. For more complex models, simply ask other founders for their spreadsheets and just modify the numbers.

There are some industry verticals (ecommerce and delivery) have much more fragile unit economics and will need more sophistication from day one. But most other industries don't need detailed financial projections at seed level.