The Real Reason VCs Want to See Your Financial Model
At Boomerang Ventures, a venture capital firm in Indianapolis, IN,we invest in Midwest entrepreneurs in emerging and evolving companies.

The Real Reason VCs Want to See Your Financial Model

Source: medium.com | Re-Post Boomerang 6/21/19

Capital Efficiency

Some businesses are just more capital efficient. While this is obvious in many cases, it’s not always so. Founders often have a sense for how much cash they’ll need to really prove things out and scale.

Capital Timing

Understanding when inflows and outlays hit the balance sheet is critically important. Too many founders just do cash models and disregard the impact of lagging collections for example, which has a cascading effect on the rest of their decisions.

Data Access

A model is only as good as the data/assumptions that underlie it. I find it helpful to be able to review a data room that documents historical financials and other quantitative data.

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