What to Consider when Preparing Financial Projection?

The goal of the financial projection to demonstrate the sustainability of the project.

You should outline your projected financials to detailing how the project will sustain itself financially over time. This should include projected revenue streams, scalability potential, and long-term sustainability.

 

The goal of the financial projection is to demonstrate the value and sustainability of the underlying assets.

You should demonstrate the underlying value of the assets backing the token and how you expect the value or cash flow of the asset to change over time. This should detail how the assets will generate returns, maintain their value over time, and ensure the token's security and attractiveness to investors.

• The financial projections to be structured as a Profit and Loss Statement (P&L) for Utility Token, and Cash Flow Statement for Asset-Backed Tokens.
• You should provide a spreadsheet version of the financial projections to pitchIN to be evaluated. A summarised version should be included as part of the Financial Discussions and Disclosures once finalised.

• You should ensure that the financial projections is consistent with the Schedule timeline for the drawdown of proceeds’ outlined in the Financial Discussions and Disclosures.

• You should explain the assumptions behind your financial forecasts.
• This includes growth projections, assumptions, and cost structures. It’s important that these assumptions are realistic and well-supported by market data.

• The financial projections should demonstrate a clear alignment with the ‘Business Plan’ section in the whitepaper.
• The projection should demonstrate the financial implications of your go-to-market and customer acquisition strategies outlined in the whitepaper. This includes estimated costs, revenue targets, timeline etc.