Startup Stack

Do early-stage startups need a financial model as they raise their angel or pre-seed round? A recent post from Tim Nielsen resurfaced this frequently debated topic and he made a great case for why founders shouldn't push back against creating a financial model, even super early on. Tim notes that founders often argue that it is difficult to create a financial model when their company is pre-revenue, because there are so many unproven assumptions. Mapping out a three-year (or potentially five-year) forecast can seem like crystal ball gazing at the early stages. However, he proposes that "the PROCESS of creating a financial model" is foundational and critical for startup founders for the following reasons: 1️⃣ Fundamentals: A competent financial model demonstrates an understanding of your business and the unit economics at play. 📊 Metrics: It identifies key performance indicators and shines a light on critical metrics (and fosters early experimentation and assumption validation). ⏳ Expectations: It places key milestones on a set timeline and illustrate your burn rate and runway in a manner that you can track against. 🤝 Accountability: Financial models set the expectations around what will be accomplished before a venture faces its next capitalization stage This is why it is never "too early" to start modeling your assumptions, determine your businesses true drivers, and lay the groundwork for your validation methods going forward. Do you agree? —— ♻️ If you found this helpful, please share PS - If you need help building a financial model, post "📈" in the comments and I'll send you a link to Forecastr's free financial model templates that will help get you started.

Almost 50% of all fundraising for startups happens between Labor Day (September 2nd this year) and Christmas. 💵 So, what can you do to prepare now to increase the likelihood of a successful fundraise for your startup in the coming months? Join us this Tuesday, Aug 6th at 2pm ET for an educational event specifically about preparing for your fundraise. Looking forward to teaming up with Mark Bugas and Vlad Cazacu from Flowlie Technologies and Mike Lightman with Hate Your Deck to share some tips on what to do to confidently be prepared to meet with potential investors. ➡️ You can sign up for this event for free here: https://hubs.li/Q02F0QP50 See you Tuesday! -- ♻️ Please share if you know others who are preparing to raise capital.

Unlock the Secrets to Successful Fundraising – Free Webinar on August 7th at 1 PM ET! Join us for an exclusive webinar on financial storytelling and the science of an effective pitch to raise capital. Featuring insights from Jeff Erickson of Forecastr and Matthew Khalili of Plan Writers, this event will teach you how to leverage neuroscience and advanced financial forecasting tools to refine your pitching skills and secure funding. Learn effective strategies for planning, pitching, and securing capital, and get your fundraising questions answered. Attendees will receive exclusive resources to enhance their financial planning and pitching techniques. REGISTER HERE: https://hubs.li/Q02HYx0X0 Don’t miss this chance to elevate your fundraising game. Join us on August 7th at 1 PM ET and start mastering your pitch to secure the capital you need. #startups #fundraising #founders

Less than 5% of all businesses in the US grow to be more than $1 million in annual revenues. And fewer than 1% make it to $10 million. I read a great article by Jeff Shada, MBA that identifies five key internal challenges that often prevent businesses from growing beyond $1 million in annual revenues. 1) Dysfunctional or Non-existent Leadership Team Successful growth requires a solid team of key executives. Founders should envision their company at the next level and design an ideal leadership team to guide talent acquisition and development. 2) Misaligned Core Values A shared set of core values is crucial for a unified direction and effort. Values should be emergent and representative of the company, frequently reinforced in hiring and daily operations. 3) Poorly Defined Core Customer, Product/Service, and Channel Development Narrowing focus on a core customer and product/service helps streamline operations and increase profitability, contrary to the notion of selling anything to anyone. 4) Operational Process Drama Identify and refine the top 3-8 critical processes that give a competitive edge. Removing inefficiencies and automating processes where possible is essential for smooth scaling. 5) Failure to Master Credit, Capital, and Cash Flow "Revenue is vanity, profit is sanity, and cash is king." Understanding cash flow and managing credit and capital are vital. Businesses must plan for additional costs associated with growth and improve their financial position to avoid cash crunches. Lack of financial management is generally the most common cause of business failure --- Let Forecastr help! Founders who are able to address these areas with a clear plan can significantly increase their likelihood of success and growth. 🚀 If you need help with your company's financial management, please reach out to get a quick demo of Forecastr and see how we can help. Get a demo here: https://hubs.li/Q02k8r5r0 #cashflow #startups #founders

If you haven't yet met Malika Jacobs --- make sure you tune in to see her pitch her company Array tomorrow! Malika will be pitching to a panel of pitch deck experts and getting live feedback that everyone can learn from. She is a dynamic and amazing founder, so it will be fun to hear the feedback from the "judges". Tues, July 9th, 2 - 3 PM ET ➡️ Register here: https://buff.ly/3x1nkXT Malika is also flying to NYC this week to attend the inaugural Founders N' Funders VC Reverse Pitch Event in New York City on Wednesday. So, I will finally get to meet her in person as she gets personal intros to a variety of investors in NYC. 🗽 Busy week for Malika! Can't wait for you all to meet her!!!! #startups #founders #FoundersNFunders

Do you want expert feedback on your investor pitch deck and presentation? Apply to present here: https://lnkd.in/gjawK59j If you're a startup founder raising a pre-seed, seed or series A round of funding, we'd love for you to apply to pitch. Please feel free to share with founders who could benefit from this opportunity. #startups #founders #pitchdecks