A tech startup developing a subscription-based productivity platform was preparing to raise seed funding. With limited historical data and a lean team, they struggled to answer investor questions around burn rate, pricing strategy, and long-term profitability. To build credibility and sharpen their internal planning, the founders developed a financial model that projected user growth, churn rates, operating costs, and cash flow needs over five years. They incorporated DCF and scenario analysis to assess the impact of different pricing structures, go-to-market strategies, and funding timelines. The exercise revealed that their original plan required more capital than expected and risked a cash shortfall before reaching breakeven. However, by adjusting pricing tiers and delaying certain hires, they extended their runway by nine months with minimal impact on user growth. Armed with a realistic and defensible model, the startup was able to raise $500,000 from investors who appreciated the clear understanding of risk and return. More importantly, the team had a roadmap they could trust. For startups, financial modeling isn’t just for investors — it’s a tool to test ideas, manage risk, and build confidence in the journey ahead.