An experienced investor dismisses a financial presentation in under five minutes. Not because the numbers are bad — because they're scanning for two very specific signals, and if those aren't there, they move to the next pitch. This guide shows you how to make sure both are there.
What an investor is actually evaluating
When an investor reviews your project's financial feasibility, they're not looking for perfect numbers. They're looking for two things:
- Do you understand your own business? The numbers are the clearest signal of how much you've thought through the model.
- Do you know the risks? Projections without risk analysis are fantasy, not analysis.
An experienced investor can forgive conservative assumptions. What they don't forgive is assumptions no one questioned.
Is your project at that stage? Generate the KPIs and sensitivity before sending the pitch — the investor's eye will look for them first.
The metrics that absolutely must be there
1. NPV (Net Present Value)
NPV shows how much value the project creates in today's dollars. A positive NPV is necessary but not sufficient. What also matters is how robust it is to changes in assumptions.
How to present it. Show the base NPV, pessimistic NPV, and optimistic NPV side by side. If it stays positive even in the pessimistic scenario, that's a powerful argument.
2. IRR (Internal Rate of Return)
IRR is the most intuitive metric for non-technical investors. "This business yields 45% per year" is easy to understand and compare against alternatives.
How to present it. Show IRR alongside the MARR you used. The IRR − MARR spread is the project's financial margin of safety.
3. Payback Period
Investors think in liquidity. They want to know when they'll get their money back. The discounted payback (which considers the cost of money) is more honest than the simple version.
Reference. Under 3 years is excellent. 4–5 years is reasonable for infrastructure. More than 6 years needs a very clear justification.
4. Sensitivity Analysis
This is the differentiator. Most entrepreneurs present a single optimistic scenario. The ones who show sensitivity analysis prove they understood the risks.
How to present it. Identify the 3 most critical variables — the ones at the top of the tornado — and show a realistic range of variation for each.
5. Break-Even Point
The break-even point connects financial numbers with operational reality. "I need to sell 800 units per month to stop losing money" is concrete and verifiable. Show how long it takes to hit BE and what strategy you have to accelerate it.
Recommended structure for the financial section
| # | Section | What to include |
|---|---|---|
| 01 | Model assumptions | 5–8 main assumptions, with sources. Never present assumptions without justification. |
| 02 | Projected cash flow | Revenue, variable costs, fixed costs, EBITDA, taxes, net flow. Year by year over 5 years. |
| 03 | Profitability KPIs | NPV, IRR, discounted Payback, Profitability Index. One clearly visible slide. |
| 04 | Break-Even | Units, dollar amount, months to reach it, margin of safety at maturity. |
| 05 | Sensitivity analysis | Tornado chart with the 5 critical variables. Pessimistic scenario with NPV still positive (ideally). |
| 06 | Use of funds | Line by line, what's done with the requested investment. They read this part with a magnifying glass. |
The questions you'll definitely get
Where did the sales projections come from?
This is the most frequent question. The answer has to be concrete: surveys of potential customers, comparison with similar businesses, industry data, pilot validation. Never "I estimated it".
What happens if the market price drops?
This is where sensitivity analysis comes in. You should be able to answer with an exact number: "if price drops 15%, NPV goes from X to Y, but stays positive".
When does the first dollar of positive cash come in?
Investors want to know when the business self-finances. Identify the month when monthly operating cash flow turns positive. It's different from the total payback of the investment.
What's the worst-case scenario?
Present the pessimistic scenario. If NPV stays positive, that's a very strong argument. If not, explain what levers you have to reverse it before it's too late.
Entrepreneurs who arrive with concrete answers to all four questions pass the first filter. Those who improvise don't. Generate the numbers before the meeting — not after they're requested.
Mistakes that kill a financial presentation
- Growth projections of 100%+ year over year with no justification. Nobody buys it.
- Not including inflation in a high-inflation economy. It's inconsistent.
- Underestimated CAPEX. Experienced investors know there are always forgotten costs.
- Presenting a single scenario (the optimistic one). A signal of immaturity in the analysis.
- Not knowing what happens if sales drop 20%. If you didn't run sensitivity, you won't be able to answer.
Format matters as much as the numbers
A well-presented report with solid numbers communicates seriousness. Factibilidad.io automatically generates an executive PDF report ready to present to investors: KPIs, charts, sensitivity analysis, and cash flows, all formatted.
Apply what you read — generate the complete report for your project before the next meeting.
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