A VC Asked to See My Financial Projections: Here’s What Happened
There’s a moment every entrepreneur fears: you’re sitting in a sleek conference room, trying not to sweat through your shirt, when the venture capitalist across from you leans forward, folds their hands, and says those six little words: “Let me see your financial projections.”
For many founders, this is the point when the adrenaline kicks in. You have a vision, a plan, but the numbers? They feel abstract at best. And let’s be real — financial projections, no matter how meticulously prepared, are more fiction than fact. Even the most conservative estimates can unravel like a ball of yarn once your business hits the chaotic real world.
I’d love to tell you I was calm and collected when it happened to me, but if I’m honest, I felt a little like someone just asked me to explain quantum physics in a foreign language.
The Setup: My Big Meeting
It all started with an email. I had been reaching out to investors for months, and one of the big names finally agreed to meet. Big name is an understatement. We’re talking one of those legendary firms that regularly makes headlines in TechCrunch. When I got the confirmation, I was ecstatic. My co-founder and I high-fived like we’d just scored a touchdown.
The meeting was set for Friday at 9:00 AM — prime time, the first slot of the day. I took it as a good omen.
The night before, I hardly slept. My brain wouldn’t shut off. I was thinking about how I’d pitch our product, how I’d sell the vision, and whether I’d chosen the right shoes. (Tip: Go with something comfortable but polished. My feet regretted the overly formal pair halfway through the meeting.)
I rehearsed my pitch at least twenty times in the bathroom mirror, stopping only when my dog started giving me judgmental looks.
Game Day: The Nerves
The next morning, I walked into the VC’s office with my co-founder. The reception area was a shrine to minimalism: white walls, minimalist furniture, and subtle lighting that seemed designed to make mere mortals feel small. The receptionist gave us a smile that felt both welcoming and intimidating, which is a rare skill.
After what felt like a lifetime but was probably only ten minutes, we were ushered into the glass-walled conference room. There, the VC sat — polished, professional, and impossibly calm. We exchanged pleasantries, and then it was go-time.
I launched into my pitch. I was prepared. I knew our product inside and out. I had stats, customer testimonials, and my polished deck ready to go. Everything was going smoothly. The VC nodded at all the right moments, scribbled notes, and even chuckled at my one attempt at humor (a joke about the ridiculous number of buzzwords in startup culture).
I could feel the momentum building.
And then, just as I was getting comfortable, the VC tilted their head slightly and dropped the bombshell.
“So,” they said, “can we take a look at your financial projections?”
The Truth: I Wasn’t Ready
I froze. My brain, which had been happily cruising along, suddenly hit a wall. Financial projections? Right now? Sure, I had them — buried somewhere in a spreadsheet that looked more like an abstract painting than a plan. But I wasn’t ready to talk about them in any meaningful way.
Still, this was the moment. I couldn’t back down. So I nodded confidently and pulled up the slide with our financials.
“Here we are,” I said, feigning confidence.
The VC leaned in, studying the numbers. I did my best to keep up, explaining our expected revenue growth, customer acquisition costs, and the always-elusive breakeven point. The words were coming out of my mouth, but inside, I was sweating bullets.
They asked a few pointed questions. “How did you calculate your burn rate?” “Why do you expect a 10% increase in Q3 when Q2 is flat?”
My responses were…adequate, but I knew they weren’t buying it entirely. This was the part of the meeting where the gloss of optimism started to fade, and reality set in. Numbers are numbers, and you can’t charm your way out of them.
What I Learned: It’s Okay to Be Real
I wish I could say I nailed that financials conversation, but that wouldn’t be the truth. What actually happened was far more humbling. I floundered a little, gave a few wishy-washy answers, and then something unexpected happened: I stopped bullshitting.
In the middle of trying to explain a projection I knew was shaky at best, I just paused. I could see the VC wasn’t impressed. So, instead of doubling down, I took a deep breath and said:
“You know, these projections are our best guesses based on what we know right now. But I’ll be honest — there’s a lot we still don’t know. We’re working on validating some of our assumptions, and these numbers are going to change as we learn more.”
For a moment, the room went quiet. My co-founder looked at me like I’d just set fire to our future. But then the VC did something I didn’t expect. They smiled.
“Good,” they said. “It’s refreshing to hear a founder admit that projections are just that — projections. Most people come in here pretending they’ve got everything figured out. But the truth is, no one knows for sure.”
I could have hugged them.
The Aftermath: Real Conversations Matter
That meeting didn’t end with a check, but it did end on a positive note. The VC appreciated our candor and said they’d stay in touch. More importantly, I learned something critical that day: VCs don’t expect you to have all the answers. They want to know that you’ve thought through the important questions.
After that meeting, my co-founder and I went back to the drawing board on our financials. We hired a fractional CFO to help us build more robust models. And the next time a VC asked to see our financial projections, we were ready — not because we knew exactly what would happen, but because we were prepared to talk about the variables, the risks, and the unknowns.
The truth is, projections are just educated guesses. They’re a tool for understanding what might happen, but they’re not gospel. Any investor worth their salt knows this. What they’re really looking for is how you think about your business and whether you’re prepared to adapt when things inevitably don’t go according to plan.
The Realities of Fundraising: It’s Not Just About the Numbers
As we went through more rounds of fundraising, I came to realize that financial projections are just one piece of the puzzle. Sure, they’re important. VCs need to see that you’ve thought about how your business will grow, where the revenue will come from, and how much cash you’ll need to get there. But they’re also looking for something less tangible.
They want to see how you handle pressure, how you respond to tough questions, and whether you can admit when you don’t know something. They want to know if you’re the kind of founder who will dig in and figure things out, or if you’ll crumble when the going gets tough.
After that first VC meeting, I had plenty more where I had to defend our financials. And each time, I got a little better at it. But I never forgot that lesson from the first meeting: it’s okay not to have all the answers. What matters is that you’re honest about what you know, what you don’t know, and what you’re doing to fill in the gaps.
What I’d Tell My Younger Self
If I could go back and give my younger, more terrified self a pep talk before that VC meeting, I’d tell them this:
Don’t panic. It’s not about having the perfect financial model. It’s about having a solid understanding of your business and being able to explain how you’re thinking about growth. Be ready to admit what you don’t know, and be transparent about your assumptions.
And most importantly, don’t be afraid to pause, take a breath, and be real. Investors don’t want to hear a perfectly rehearsed pitch; they want to have a conversation. So give them one.
Oh, and maybe go with more comfortable shoes next time.
