How much detail do angels & early stage (seed/pre-seed) VCs want to see in a SaaS financial model?

(Original post on Quora at bottom of this article. Answer by Aristos Peters):                              QuoraLogo

To a degree, it can depend on who you ask and what stage your revenues are. Jason has answered well from his perspective as a VC looking for post-revenue deals (very often VCs are looking for ‘established revenues’, or ‘significant early revenues.’).

For those that are willing to look at the riskier ‘pre-revenue’ deals, the answer to “how much detail” is largely a matter of personal investor preference.

Then you also need to qualify what those ‘details’ might be because in your text you mention three aspects: 1) projections/assumptions (usually taken to mean financial), 2) key (performance or validation) metrics and 3) costs.

My experience of deal reviewing both with angel and VC peers is that most investors usually look to see how you have arrived at 1 and 3 (hopefully via benchmarking), but investors worthy of a place on your capable know their way around key metrics such as CPA or churn rate, etc.

I am working on this very issue and can’t talk about it just yet but I’d be happy to continue the conversation offline. Catch me in Twitter? (@weklik)

How much detail do angels & early stage (seed/pre-seed) VCs want to see in a SaaS financial model?

Advertisements

About Aristos Peters
I work rest and play in the digital space, with particular interest in digital startup companies and their need for seed, angel and VC investment. As a NED, I have worked with several start-ups, taking them through funding rounds and also work on investment acceleration and business growth helping companies to become investment ready. Currently about to launch the startup fundraising app D RISK IT (www.drisk.it).

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: