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