Choosing the right startup financial model template can make or break your pitch. Learn what investors expect and what to consider when selecting a template that scales, impresses investors, and helps you raise capital.
Building a financial model that wins over investors can be one of the most daunting tasks for any founder. It’s not just about filling in a spreadsheet – it’s about telling the story of how your business will grow, become sustainable, and turn a profit.
As a founder who’s been in the trenches, I know exactly how overwhelming this process can be. We’ve had to pitch, fail, iterate, and pitch again. After raising capital and going through the highs and lows, here are a few things I’ve learned the hard way:
1. Creating a financial model from scratch is often daunting, especially for first-time founders or those without a financial background
2. Many founders start with free Excel templates, which might seem like an easy win, but can really limit you when it comes to scalability, presentation, and collaboration.
3. Financial projections are key, but how you structure and present them is just as important. Investors want to see confidence, clarity, and a solid plan that takes the unpredictable nature of startups into account.
In this guide, I’m going to share what I’ve picked up about building investor-ready financial models. But here’s the twist: it’s not just for investors. You need a model that resonates with your team, board members, and potential partners, too. Plus, I’ll introduce you to a powerful startup financial model template that has everything you need, whether you’re raising your first round or gearing up for your next growth stage.
Here’s what we’ll cover:
Here’s the secret to building a financial model that knocks investors off their feet: keep it sophisticated but simple. Sounds counterintuitive, right? But here’s the thing—investors love detailed, credible forecasts, but they hate getting lost in complexity. Your model needs to show the essentials—revenue growth, profit margins, cash flow—while still being flexible enough to adapt to different scenarios.
Investors love to see you take into account different scenarios. They want to see the full spectrum: best case, worst case, and everything in between. So, your financial model needs to be ready to pivot on the fly and give them a holistic view of your business’s potential. It’s about building trust and showing them you’re prepared. This not only builds trust with investors, but also shows that you’ve thought about the potential risks and outcomes.
When it comes to financial models, investors are laser-focused on a few key things. At the top of the list: revenue projections. They want to see how your startup will grow over time, how big your market is, how fast you can capture it, and what your unit economics look like.
Some key questions your model should answer:
Investors will also scrutinize your assumptions, like customer acquisition costs (CAC) and burn rate, so make sure your estimates are realistic and backed by research.
Lastly, investors are drawn to financial models that reflect a strong understanding of your industry. For a SaaS company, metrics like monthly recurring revenue (MRR), customer lifetime value (LTV), churn rate and payback period are crucial.
There's a lot of financial model templates for Bottom line? There are a lot of templates out there. However, the reality is your template can’t just be off-the-shelf—it needs to fit your unique business. Customization is key.
You can have the most rock-solid financial model in the world, but if you can’t communicate it, you’re dead in the water. Your financial model will be viewed by different audiences – investors, board members, employees, and possibly even potential partners – and each of these will require a different approach. That’s why your financial model template has to be flexible, letting you zoom in on the details or pull back for the bigger picture.
One of the best ways to communicate your model is by telling a story. Numbers are important, but you’ve got to connect them to your startup’s vision. Investors don’t just want the what—they need the why. Why do these numbers matter? How do they tie into your long-term strategy? If you can make your financial model part of the larger narrative, you’ll win them over.
And try to not overcomplicate things. Use visuals—charts, graphs, summary tables—to make your points crystal clear. Investors don’t have time to dig through endless rows of data, so help them see the big picture at a glance.
Many founders begin their startup financial modeling journey using free Excel templates, which seem tempting but have some serious drawbacks. These templates come with serious limitations that will hold you back. Founders who rely on them often run into the same issues:
So what should you be using?
For founders, having a solid startup financial model is a must – not only for attracting investors but also for making smart decisions and keeping your team aligned. The problem? Building one from scratch can feel overwhelming.
That’s why we started Decipad. Even if you’ve never built a financial model before, our pre-built templates guide you through the essentials—revenue drivers, costs, key assumptions—and make it dead simple to create a model tailored to your startup. You don’t need to be a spreadsheet wizard to get started.
Let’s take a look at an example. In this case we’ll use our SaaS Revenue Forecast Decipad template. In this startup financial model template, we start with several key inputs and assumptions:
In Decipad, scenario planning is built in. Just move the sliders to see how different inputs change the output in real-time. Now imagine doing this on the spot, as the investors watch you and appreciate your understanding of the business and its underlying drivers.
What also makes us unique is: Decipad isn’t a spreadsheet. We’ve deliberately ditched the grid and gone with a human-readable format. Variables and formulas have actual names—not those obscure cell references. This makes it way easier to explain your model to investors, and saves you from the usual “can you walk me through that again?” moments.
As you start using Decipad, you’ll quickly realize that it’s more than just a financial modeling tool for startups - it’s a platform that empowers you to make smarter, more informed decisions. With the ability to update your model easily, combine narrative with numbers, and explore different scenarios, you’ll be able to tell a compelling story that builds confidence in your pitch.
If you’re ready to build a financial model that impresses investors, try one of our pre-built templates, or request access to the solution. It’s everything you need to create a model that’s simple yet powerful, and much more visual than a spreadsheet model.
Stay in the loop with updates from our team and community.
Once a month.
.png)
