If I haven't launched yet how can I provide proper forecasts for potential investors?

You need to show 18 months of monthly forecasts and IMO 5 years of annual (i.e. not monthly).

Crazy, right?

Not really. The 18 months should show how you think you’ll make money through the build up of the revenue line (even if small) and they’ll show your assumptions on cost. Nobody is looking for perfection – just how you think.

The 5-year plan is high-level and nobody will hold you to it. But it shows that you’ve thought about the TAM (total addressable market) and how big you’ll be relative to that. People want to know “can this be a big company some day.”

Some people advise against this – they just want to see product and imagine what could happen if your product takes off. There are investors like this. But they’re in the minority so better to have a back-up plan.

Founders who are talking

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How can I provide proper forecasts for potential investors if I'm pre-launch?

Answered by David Hornik – Partner, August Capital Posted in Money

You can't. Any smart investor knows that your forecast pre-launch is totally made up. So the real question for investors is "did you make reasonable assumptions?" When ... (more)

I'm trying to put together a forecast of future growth and I don't have any past precedent to use to calculate (we haven't launched yet!) - what should I do?

Answered by Simeon Simeonov – Founder, FastIgnite

Use common sense and look at comparables. Make your assumptions explicit + think about how you can test them. Focus on your goal. If the forecast is for internal consumpti... (more)

Hi Dan. Thanks for making your time available. My question deals with calculating value. I am at a stage where I have an investor lined up for 50% of my company (which I...

Answered by Dan Martell – Founder & Investor.

Honestly, it's a negotiation. The best way to negotiate is to have multiple offers. If you don't have that - then you need to be willing to walk. If you're not willing t... (more)

How can I convince an investor to invest in my company when I don't have any prior experience and haven't launched yet?

Answered by Dan Martell – Founder & Investor.

Social proof. Get others to invest in you, it'll help. Also, try and get pre-orders of your product - essentially letters of intent. Honestly, the easiest way is to laun... (more)

I own a great website that I haven't launched to the public yet, once I do so.....at what point should I seek capital? How many users do I need before VC's are interested? ...

Answered by Daniel klass – Partner at Klass Capital VC fund.

i don't think so. typically this would be a friends and family round if you need the capital. I would prove out users and revenue model and really only raise capital when y... (more)

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