What VCs Actually Look At in Your Financial Model (And What They Don't)
Collated by Harry Prabandham
Curated by Rubric Financial
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What VCs Actually Care About
- Three numbers, in order of importance: (1) the next 12 months of revenue + the conviction behind it, (2) your unit economics at scale (CAC payback, gross margin, LTV:CAC), (3) how much you need to raise to hit the next milestone.
- Everything else (5-year projections, market sizing, terminal-year IRR) is either (a) inputs to validate those three numbers, or (b) box-ticking that doesn't affect the decision.
- Top-tier VCs make their first-pass decision in <10 minutes with your model. The model isn't there to convince them you're right; it's there to convince them you've thought clearly about the unit economics and the next 12 months.
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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