Do Angel Investors and Seed VCs Ask for Detailed Budgets Before Investing?

Many do. Why?

Even if you are very early stage,

It’s really one of the best ways to learn.

To learn what in the founders’ heads:

• How long do they want the cash to last?
• How are they thinking about hiring?
• What do they think the key drivers of the business will be?
• How are they thinking about unit economics?
• Does the model even make sense?
• Do they really understand their business model?
• Do they really understand how marketing works, and/or sales works?

Of course any early-stage (or even late-stage) model is “wrong”.

That does not mean it is not directionally correct, and at a minimum, informed by a lot of careful thought.

When it is, you can learn a lot.

No matter what cell D78 is.