Most startup pitches focus on their future.
It’s bright. The numbers are growing fast and will be big. The sky’s the limit.
Just how much do investors put behind those startup forecasts?
The answer: It depends on the historical numbers the forecast is based on.
If there’s a consistent track record of historical growth, then the forecast has credibility.
If there’s no historical record, then the forecast does not.
Always show your historical numbers to establish a baseline and show how you can move from the historical to achieve the forecast and the systems that will take you there.
Most startups hang their forecast on market potential alone. You need to also show how you can execute to obtain it.
This could be a new team member, another product, or a new market segment.
Help the investor connect the dots and don’t expect anyone to take a flying leap without a good reason.
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Let’s go startup something today!
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NOTE: Investor Connect is a program under the Texas Open Angel Network which is a 501(c3) non-profit dedicated to the education around startup funding. Hall Martin is the principal contact, and may be reached at http://www.investorconnect.org/contact.
Hall T. Martin is the Director of Investor Connect which is 501c3 non-profit dedicated to the education of investors for early stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.