This document provides guidance on preparing financial projections for startups seeking investment. It recommends starting with market research to establish credible assumptions about potential market share and revenue. Financial projections should be built from the bottom up based on assumptions about contract value, sales channels, costs of goods sold, and operating expenses rather than just multiplying prior years' numbers. The goal is for investors to discuss the underlying assumptions rather than the specific projected numbers. It warns against constant percentages for gross margin and expenses or projections that don't make logical sense based on the business model and market opportunity.