Why Venture Capital Investors Should Want to See Your Five Year Financial Proforma – Rockies Venture Club


A good venture capital proforma should show all years from present through exit to demonstrate your ability to SCALE, justify VALUATION, and plan for EXIT.

Marty Koenig‘s insight:

Totally agree with Peter. the numbers going out 5 years show the savvy investor that you are:

1. considerate of what they are used to seeing

2. have thought well beyond the possible about how to get there

3. that you believe you can scale and can put that on paper

And the rest of what Peter says about valuation,investor return, and exit strategy prove that you know what you are talking about. 

So many entrepreneurs think it’s all about the PRODUCT PRODUCT PRODUCT. Investors don’t really care that much about the product. They care about the people they are investing in. and if the people aren’t willing to the the energy and thinking into a 5-year projection are they really the type of people a VC wants to invest in? 

This, I know first hand.  

See on www.rockiesventureclub.org