What Investors Want to See When Evaluating a Financial Model

Business plan financial projections are designed to give an investor or banker a feeling for how well your company can perform, typically over a period of either three or five years. Bankers considering whether to extend a line of credit or grant a loan to a new business will typically seek a three-year model (the SBA standard), while angel investors and private investment firms/VCs look for a five-year model. Financial projections are a blend of art and science.  There is always a leap of faith in the modeling process, for example, can you...

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