Fri, 18 February 2022
How to Show Financials in a Pitch Deck
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
The financial projection is a key element in the presentation to investors.
Many founders cut and paste cells from the financial model spreadsheet into a slide.
This renders the information unreadable as the spreadsheet doesn’t fit with the presentation format.
To show your financial projections, consider the following:
Don’t cut and paste from the spreadsheet.
Investors cannot take in a detailed spreadsheet on a slide in such a small font.
They can only take in the high-level information.
Choose specific numbers from your financial model and place them into the slide using the same font and format as the rest of the deck.
Choose three sets of numbers: revenue, costs, and profits.
Show last year, this year, and the next three years in your presentation.
This yields a five-year window into the company.
Create a line graph showing each one.
The revenue shows what growth rate you are projecting.
Avoid hockey sticks as investors will discount those numbers as unrealistic.
Show the costs and then the profit line.
Include 1-3 key metrics as well.
Also include additional fundraises proposed in the model.
Investors will look for the growth rate you are projecting.
They will look to see when you go cash flow positive.
Investors will look at the burn rate on the profit line and then check the fundraise to see how much cash runway you are proposing.
The key to presenting the financial projections is to call out three key numbers such as the growth rate, months to cash flow positive, and the number of months of cash runway.
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