At Concept, you’re not proving scale economics — you’re showing that you’ve done the math, that your burn and funding asks are realistic, and that any capital raised ties directly to building, launching, and learning.
Advisors don’t expect precision, but they do expect honesty and logic. Show that your plan supports survival long enough to test the market.
Purpose
- Demonstrate that your financial expectations match your stage.
- Prove you’ve thought about burn, runway, and when revenue begins.
- Tie funding asks to milestones (not just “keeping the lights on”).
- Signal maturity with a clear funding philosophy (realistic, disciplined).
When to Complete
- Alongside Revenue Model, before pitching angels or accelerators.
- Before committing meaningful capital or hiring decisions.
- Before you’re at risk of running out of cash without a plan.
Proof Sections
Runway & Burn
- What’s your current monthly spend? How long until funds run out?
- Are founder salaries deferred? Is this part-time or full-time?
- B2B SaaS: $6.5K/mo burn, mostly dev + cloud, 2 months runway on savings.
- B2C CPG: $8K/mo on ingredients + packaging for pilot runs, 3 months left.
- Services: $3K/mo overhead (insurance, legal, admin), funded from client revenue.
Projections (High-Level)
- When will revenue realistically start, and what’s the first meaningful milestone?
- Keep it directional, not hockey-stick.
- B2B SaaS: Target $20K MRR by month 10, 100 customers across 2 tiers.
- B2C CPG: Break-even at 2,000 units/mo; first wholesale PO expected Q3.
- Services: 10 retained clients by month 6 covers ops + 20% buffer.
Funding Needs
- How much are you raising, and why that number?
- Which milestones are unlocked by that spend?
- B2B SaaS: Raising $350K for 12 months runway, v1 launch, 50 pilots.
- B2C CPG: Raising $250K for first co-packer run, FDA label, retail distribution.
- Services: Raising $100K for regional expansion + training program.
Use of Funds
- Show specificity, tie dollars to outcomes.
- Example:
- $120K → dev (1 FT + contractors)
- $80K → GTM (early sales + campaigns)
- $50K → founder runway (keep team alive)
- $50K → legal, ops, infra
- Example:
Funding Philosophy (Optional but signals maturity)
- How you’re thinking about valuation, dilution, and alignment.
- “Not chasing valuation; focused on clean cap table and aligned partners.”
Execution Requirements
- 1–2 sentence Runway & Burn statement.
- 2–3 sentences on Revenue Start + Milestone Projections.
- 1–2 sentences on Funding Needs.
- 3–5 bullets on Use of Funds.
Domain Adaptability: Specialized
- SaaS: highlight cloud/infra costs, developer burn, early ARR goals.
- CPG: highlight production runs, inventory cash cycles, packaging/regulation.
- Services: highlight training, staffing, and client acquisition costs.
Expected Output
- 1–2 paragraphs (Runway → Projections → Funding Needs).
- Optional bullets/table for Use of Funds.
- Link to forecast sheet or early cash flow doc.
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Optional Enhancements (Pro-Level Execution)
- Build a 1-page financial snapshot: burn, runway, funding ask, milestones.
- Include a Use of Funds pie chart.
- Run a sensitivity test: what if revenue comes in 3 months late?
- Benchmark burn vs. peer startups to show credibility.