Do Not Forget to Look into Startup Financials before Investing Your Money

Startups are at very threshold of their business and may not have too much financial details available. But, as an investor, you must look into the financial canvas of the startup in question. Because this is where you can have clear idea about what the team is up to and what’s their next projection.

So, before you actually invest in a startup, you must know that….

Investigating the financials may be a bit tricky in case of early stage startups; calculating projections to 5 years is almost impossible but the founding team should be able to at least showcase the roadmap of how they want to build the story towards becoming a profitable company.

An overview of cash flow can tell an overall picture of what’s happening with the available funds right now. Moreover, check the marketing plan and see how they are allocating resources to achieve what targets!

It is very interesting at this point to review the burn rate of the company and if what they are doing with their money actually makes sense.

You may also want to read how important it is to where the startup will be spending your money!