Asked by Nathan Cross on Feb 18, 2024



Presenting carefully thought-out financial projections to investors is an exercise in lowering perceived risk in both you as an entrepreneur and your idea.


An individual or a group who creates something new—a new idea, a new item or product, a new institution, a new market, a new set of possibilities.

  • Recognizing the role of financial projections in mitigating perceived risk.
  • Developing skills in creating accurate and realistic financial projections.
  • Understanding the importance of financial projections in the investment process.

Verified Answer

Sarah Alkaabi

Feb 18, 2024

Final Answer :
Explanation :
Financial projections demonstrate that you have a clear understanding of your business model and have thoroughly considered the potential revenue streams and expenses. This helps investors see that you have thought carefully about the feasibility and profitability of your idea, which can lower the perceived risk of their investment.