In response to purogovind on Twitter
Purogovind: “Am wondering how important are financials. I just have a vague picture of it.”
(Context: filling up Financials section in the Business Summary for submission to The Power Of Ideas)
The Economics Times response:
“For those with an existing business, please use a table to summarise your past years’ revenues and profits and project the same for the next three years (if applicable). Also, state the funding you have received to date (whether venture capitalist, family, etc) and the funding that you are now seeking and how you plan to use the funds. Please give forward projection of your funding requirements for the next three years. If you are planning a new venture, please give projected financials, investment sought and plan for use of funds.
Essentially, it is important to have a sense of financials. This will help the VC to understand how much he needs to give out.”