Updated: Oct 20
A common catchphrase around seed and VC investing is "the only thing we know for certain about financial projections is that they will be wrong."
The rationale behind this commonly accepted nugget is that a revenue estimate of say, $10,000 a month, won't be accurate because revenue will probably be at least a few dollars more or less.
In this strict way, traditional models are in fact inaccurate, but if improved they are could be more useful. Think about how we don't just dismiss extreme flood warnings just because the possibility of rain is not 100%.
At Finply, we want to break current limitations in financial modeling. So we have gone a step further, instead of single number projections, we have given users the ability to create range estimates for their projections. In the same spirit of weather predictions, our users can change the inputs of their models to create a probability function for their revenue. A model made with our apps, following the example above, is able to project revenue to be between $8,000 and $12,000.
The better news is that these complex models are will take minutes to create and instantly modified with easy-to-use sliders. They can also be saved and reproduced easily by collaborators or investors. Traditional financial spreadsheets are outdated but our models are righting these wrongs.