“What's your downside case?”

What they're really asking

Will you survive if things go wrong? 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

1. Show the Worst case on the same page as Base.
2. Say when cash would run out.
3. Explain your response plan and trigger.

An example answer

In our Worst case, with higher churn, higher CAC and a Series A three months late, cash runs out around month 23. We decide in month 12 whether to cut burn.

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

Where the proof lives

Before the meeting, find the number behind your answer. In our workbooks it lives in: Scenario Comparison. If you can open that tab and point to it, the follow-up question is easy.