The opinions of the entrepreneur are expressed.
There is a advice floating around the starting circles for years. You probably heard: “Investors take more care about your story than your number. Only sell the imaginary.”
Sometimes, it is framed like motivation. In other times, he was transmitted from “consultants”, which gives good sense, but did not actually raise the money. In both cases, it’s wrong – and for many early scenic builders, it’s what sinks shots.
The truth? The most serious investors are looking at both. But if you go into a room and can’t talk exactly about your numbers, that room closes fast.
The founders saw with large markets and a large pitch decks could not explain how the case works not because the idea is not interesting.
Related: How to get financing: not to grow capital from DOS and investors
You don’t need a financial degree but you need answers
Investors do not expect perfect models. They know that early staged companies are mixed. But they want to see how you know where your money goes, how it comes and what your next dollar will do.
Can you explain your current combustion rate? What is your actual runway – meaning, only “we have increased $ 1 million”, but how long does this money last in your current pace? How much does it cost to get a customer and these clients are also sticking around?
You don’t need ten slides to answer these questions, but you need to be ready for them. Because when it is not, it sends a message: You still think the company is not a company’s founder.
This is a space that kills many deals.
Numbers do not replace the story – they prove that
The recommendation of “pay attention to vision” sounds good. Corrects the builder’s ego. It’s enough of your big idea.
However, the vision does not lift its head alone. Numbers gives you the weight of the vision. The idea shows how to play in real world behavior – what do users do, how it comes and how is the operating scales.
It’s not about schedules for your own memoirs. This is not just a dreamer, but like an operator, it’s going to show you understanding your work.
And the bar increased. In 2023, investors in the DocSend report, the second time in financial units of the decks, the team was immediately after the team slides. In other words, after you know who is behind the company, they want to know how the case works.
It doesn’t mean you get a link to be early
It’s easy to think, “We are incoming, so there’s not much to show yet.” But even pre-profitable enterprises need to watch something – user behavior, early conversion ratios, retention or holding lists from beta users. Something that proves the demand and focus on what matters.
Does not mean an early immature. In fact, the early-stage teams, which invest the most, from the first day, the operaty is indicating signs of being acute.
I sat in the meetings that will continue to talk about how much the founders spend their less income in conversations, and how long it will last with more funding.
Perfection were not sold; They have shown control.
Investors do not want potential – they want to prepare
Most of the early staged investment is an example recognition. And one of the most distinguishable patterns – a positive or negative – how the founder speaks of work under the hood.
They distract the financial questions? Do they freeze when asked about margins or CAC? Or do they openly answer if numbers are small?
The answer is called much.
Because there is a truth here: the fundraising is emotional for the founder, but an analyst for the investor. We know that the next goals of mathematics, trajectory and the founder are needed.
When someone said, “Investors do not pay attention to financial issues,” they really tried to shorten this process. But there is no short way. Not already. And never happened!
Related: 10 things that should be covered in each investment pitch (infographic)
It is never easy to grow capital and advice is everywhere. Some are useful. Many spread the noise by Wannabe consultants.
But if someone says you ignored numbers and says, “just read the dream and vision pitch”, press the pause button. This recommendation can sound encouraging, but it is dangerous incomplete.
You don’t need perfect predictions. You don’t need fancy graphs. But you need to have your numbers. You need to understand how your work is working, how he burns and moves it forward.
This is not the job to understand the investor. This is yours.
The founders who know their numbers are not only capitalized – they gain respect in the room. And this market is more important than ever.