Whether you realize it or not, financial modeling is closely tied to a pitch deck. When you create a pitch deck, the last thing on your mind is probably Financial Modeling. Yet, it plays a very important underlying role in the pitch deck’s creation. Financial modeling may even be used to facilitate a conversation with a potential investor following a pitch deck presentation.

1. Connecting Financial Modeling to the Pitch Deck
Whether you realize it or not, financial modeling is closely tied to a pitch deck. When you create a
pitch deck, the last thing on your mind is probably Financial Modeling. Yet, it plays a very important
underlying role in the pitch deck’s creation. Financial modeling may even be used to facilitate a
conversation with a potential investor following a pitch deck presentation.
Financial Modeling Defined
The first step to understanding how financial modeling ties in with the pitch deck is to fully understand
financial models. Unlike Financial Projections, which are static and do not change once set, financial
models are dynamic, adaptable tools used to evaluate multiple scenarios. Financial modeling is a key
component of decision making in everyday business as well as initial business planning.
The Role of Financial Modeling in Financial Projections
Financial modeling will be used to determine the final financial projections which will become part of

2. the business plan. The Pitch Deck, of course, is a presentation of the overall business plan. One of the
main components of the pitch deck will be the financials. As expected, this is one of the main
interests of potential investors.
When determining the financial projections, they are not as concrete as many people realize. They
are based on a number of assumptions. These assumptions must be supported but are open to
interpretation and can usually be within a wide range. Pair that information with the number of
variables and it’s easy to see how there could be thousands of possible outcomes. It is all about how
you put the numbers together.
When you set out to create a business plan and ultimately a pitch deck, you are doing it because you
believe the business can be profitable. Financial modeling allows you to prove that to yourself and see
under what circumstances it can happen. It also allows you to understand the potential, both the
lower and upper limits, of your potential expenses and revenues.
The process of financial modeling makes it possible to either confirm your decisions or, to make more
informed decisions about your business plan. You may, for instance, decide to change the location of
your office or decide to be fully remote. It allows you to eventually understand exactly how much
money you need to launch or grow. It will also allow you to see where you can cut expenses or where
you may need to focus your sales efforts or ramp up your sales goals.
Facilitating Investment Conversations
Ultimately, the Pitch Deck will hopefully lead to investor interest in your business. Often, potential
investors will run numbers themselves after the meeting to determine their investment and potential
return under various scenarios. However, if you can anticipate these questions, you can prepare
financial models that you can use in real time to facilitate a preliminary conversation. This can help

3. speed things along and demonstrate you are prepared, thorough, and taking your business seriously.
Financial Modeling may seem removed from the pitch deck but, as you can see, it actually plays a very
imperative role. It forms the foundation of your financial projections, facilitates you making important
business decisions, allows you to support and defend these projections and decisions and can even
help you facilitate the investment conversation.