In short
A financial projections slide shows revenue for the next three to five years, ideally alongside gross margin, costs and the point you expect to break even. State the two or three assumptions that drive the forecast, such as customers added per month and price, and keep the detailed model in a spreadsheet for due diligence.
Investors know early forecasts will be wrong. They look at projections to judge whether you understand the drivers of your business and whether your ambition matches a venture-scale outcome.
What to include
- Revenue by year for three to five years, as a bar chart.
- Gross margin and main costs, or a simple profit and loss summary.
- Burn rate and when you expect to break even.
- The key assumptions: customers, price, growth and churn.
Keep it believable
- Start from your actual numbers, not from zero.
- Tie growth to things you control, such as sales hires or marketing spend.
- Compare your growth to what similar companies have achieved, if you can find credible examples.
- Make sure the spending matches your use of funds.
Common mistakes
- Hockey-stick growth with no explanation.
- Revenue only, with no costs.
- Forecasts that contradict the traction slide.
- Too much detail on the slide; keep the full model separate.
Frequently asked questions
Do pre-revenue startups need financial projections?
Usually a simple version, yes. It shows how you think the business will make money and what the next round needs. Keep it short and assumption-led.
Written by Gachi Foundation, a non-profit in Jharkhand, India. All pitch deck resources.