Which of the following is true with respect to financial projections for startups?
Venture capitalists often perform their own financial projections prior to making an investment decision.
Entrepreneurs often lose out on financing because they follow the generally accepted accounting principle of conservatism, thus showing too low a rate of financial return.
Often entrepreneurs build their financial projections based on third-party data sources that are misinterpreted.
Presenting well-thought out financial projections can serve to increase perceived risk in your idea, and you as an entrepreneur.
