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10 Answers That Make Your Startup Plan Investable

Startup Professionals Musings

What are your forecasts for revenue, expenses and cash flow? Forecasts are evaluated as a level of commitment and a measure of your business savvy. If you don’t plan a liquidity event, you won’t find many investors interested. Justify funding requirements, use of funds and specify a current valuation estimate.

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How much of my business do I have to give to an investor?

Berkonomics

Careful about “hockey stick” forecasts. To grow your business to a size that will be attractive to a VC or angel making an investment now, you’ve got to show that the business will be large enough at the time of the investor’s liquidity event (cashing out) to make the investment attractive at all. How much money can you get?

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8 Ways An Investor Pitch Differs From A Product Pitch

Startup Professionals Musings

This allows them to calculate burn rates, break-even points and forecast the company valuation over time. Startup investments are extremely risky, primarily because the stock has no value until a future liquidity event, such as an acquisition or public offering. Immediate investment requirements and use of funds.

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These 10 Key Elements Make a Business Plan Fundable

Startup Professionals Musings

Financial forecast and metrics. These investors want to know that you are thinking about a liquidity event – when and how they will get their money out, with ROI. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. See where your cashflow bottoms out.

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Investors Expect Ten Essentials in a Business Plan

Startup Professionals Musings

Financial forecast and metrics. These investors want to know that you are thinking about a liquidity event – when and how they will get their money out, with ROI. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. See where your cashflow bottoms out.

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These 10 Key Elements Make a Business Plan Fundable

Gust

Financial forecast and metrics. These investors want to know that you are thinking about a liquidity event – when and how they will get their money out, with ROI. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. See where your cashflow bottoms out.

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To accept funding or not? The tipping point for taking outside investment

The Next Web

This process included several rounds of financial forecasting to understand the cost of achieving where we wanted the business and brand to be, and whether we could pay for that cost ourselves. This will have a significant impact on the amount business owners could realize on the sale or other liquidity event for the company.