When showing financials to prospective investors, how do you account for not knowing when the new investment will actually happen?

Rookie error.

Investment should NEVER increase growth in a model.

Investment should only SUPPORT growth.

So, put the money into the model at a logical date vis-a-vis when you are raising it (e.g., 2 months out).

But if you need money to grow, you are doing it wrong.

You should grow.

Then raise money to keep the engine humming, and feed the machine.

Whenever I hear “we need the money to grow”, I’m always out as an investor. 100% of the time.

That’s just not the way pre-nicorns work.

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Published on October 16, 2016

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