Investor question 47 of 50 · Risk, scenarios & the plan
“How did you build this model?”
Short answer: the investor is really asking can we trust it? Answer in three steps: (1) explain: driver-based, 3-statement, monthly, linked; (2) mention integrity checks (balance sheet balances); (3) offer to walk through assumptions.
What they're really asking
Can we trust it? Investors rarely care about the question on its own. They're testing whether you know your numbers cold, whether your assumptions are honest, and whether you can explain them simply.
How to answer, step by step
- Explain: driver-based, 3-statement, monthly, linked.
- Mention integrity checks (balance sheet balances).
- Offer to walk through assumptions.
An example answer
It's a monthly 3-statement model built from our actual pricing, churn and CAC. The balance sheet balances every month and the assumptions have notes with sources.
Figures are from Loopdesk, the fictional SaaS company in our sample files. Swap in your own numbers and keep the structure.
The answer that loses trust
Avoid
"Our accountant made it" with no understanding.
Where the proof lives
Before the meeting, find the number behind your answer. In our workbooks it lives in: Checks, Assumptions notes. If you can open that tab and point to it, the follow-up question is easy.