Updated: Nov 29, 2021
A robust budget for your startup is easily one of the most important items in your Accounting & Finance department. In my career I've built over 100 budgets for startups, and they typically all center around the same core reasons:
The first thing that your investors are going to ask during the fundraise is what exactly are you going to spend the money on?
They would want to see that you have a clear, defined plan for how your business is going to grow, giving them the confidence that your startup will ultimately succeed. Odds are, if you can't communicate your startups roadmap to success in a budget...you may not have it all figured out yet.
Often times, your first fundraise will be the first time your budget gets prepared, and can it be one of the largest areas of scrutiny during due diligence.