The Case of Raising Venture Capital
A high technology company selling into the US marketplace was considering the possibility of raising venture capital to finance a more aggressive growth strategy. Potential investment candidates insisted that the client prepare and present a set of cash flow projections that would reflect how the investment proceeds would be used and what the resulting changes in operations would look like.
Scarrow Yurman & Co consulted with the marketing, operations and executive officers of the company to prepare a set of detailed five year cash flow projections. As a result of the analysis and deep thinking required to complete the projections, our client had a very clear plan of how to proceed when the financing was secured.
Our client had a professional and defendable projection that they were able to present to potential venture capital investors. As an added bonus, our client could use this projection as a “budget” with which to compare their ongoing actual financial results.