Why a financial projection slide is vital to your startup pitch deck
You’ve created your MVP and successfully launched your startup business but you’re running out of cash or you have an idea and you want to pitch an angel investor to fund it. Sound familiar?
When you’re raising money it’s important that you include a cohesive financial plan to present to investors. They want to see your thought process about costs and growth. They also want to be able to talk with you about your numbers and assumptions behind them - even though investors understand that reality often turns out to be different.
The whole idea of approaching an investor is to convince them to invest in your company. If you were an investor about to hand over thousands or even millions of pounds in investment. Would you want to see their financials?
What do good financial projections look like?
When you think of a financial projection of a startup something like this probably comes to mind.
Many founders look at this and hyperventilate. They get nervous because it involves maths, lots of little boxes, money in motion and complicated costs that confuse people. These components can make the slides in an investor pitch deck look so complicated.
A typical SaaS subscription model includes:
- Key metrics (KPIs) - CAC, ARPA, MRR, LTV, Churn
- Income; including current revenue and raised capital
- Expenses (COGS and operating costs)
The good news is that you don’t have to be an Excel master or a math whiz to impress investors!
In this video, our co-founder and CEO, Sara Green Brodersen explains how a solution such as Canaree can be your “on the go” tool for startup financial modelling.
What if you’re not raising money?
As a founder, it’s essential to get in the habit of creating and sticking to a budget to continue growing your business. 90% of startups fail because they don’t know how to manage their cash flow well. You’ll get better at making predictions and forecasting when speaking with potential investors. Practice makes perfect.
Hold the fort, you say you’re working on your product over the next few months and why would you need financial modelling? It’s still important to start thinking about cash management now before you launch. You’ll put yourself in the driver’s seat if you do.
At Canaree, you can build a startup financial model, complete with an advanced budget within minutes. And, depending on the type and stage of your business we have a template ready for you to use.
We’ve simplified the process so that you can create beautifully designed models that fit nicely within your investor pitch deck. On top of your numbers, we also analyse them. For example, if your unit economics look off, here are a few ways to improve them. All of the advice you would get from a financial advisor is included in the product.
So when you're ready to complete a pitch deck with financial projections and a unit economics slide, you can count on Canaree to deliver this with ease. We can help you keep track of your revenue and expenses, produce a cash flow statement and get investment ready with a completed financial model that will impress your investors.
Check out our premium features here. And if you sign-up for Canaree over the holidays, we'll offer you a tasty discount. We believe you'll enjoy the full experience of having a premium account with us.
It's been a tough year for all, and to help brighten the end of this challenging year, we're offering a 20% discount. Perhaps you're planning on crunching the numbers for an investor pitch or big meeting in the New Year?
By using the code: Premium20 when you check out, you'll get the job done in no time. (valid until 1st of January 2021)
Want to kickstart your startup in 2021 and plan your financial forecasting in real-time and delivered through a dynamic, intuitive dashboard, signup for Canaree today. Happy modelling!