Reading Startup Financials for Angel Investors
As Angel Investors review a startup, considering it for funding, they dive into the details of how the business runs. At the core of the business process is some financial model. Embedded in this financial model is the colleciton of assumptions about the business. As Angel Investors, it is critical to understand the assumptions that the founders are making on their business. Early on, the precision of these assumptions can vary a lot.
We will explore how startups and Angel Investors should think about the financial modeling and the consequent communications about the business that result.
Steve Hord is an investor in the Seattle Angel Conference and has been a key member of several startups.