No, you don’t necessarily need a financial model at the pre-seed stage. Often, investors won’t even ask for it. However, having a light financial model can be beneficial. Here’s why:

👓 Signals your understanding: It tells investors you know your business. You’re thinking about the revenue model and the economics.

🐡 Shows growth potential: A simple financial model helps you communicate your story for growth. It helps investors clearly see how you will optimise your business to venture scale and gives them confidence in their assessments.

💨 Boosts credibility: Proves you’re serious and knowledgeable.

🏹 Help with planning: Helps you plan your business strategy more effectively.

🌊 Gives investor confidence: Boosts investors' confidence in your ability to manage and grow the business.

It’s not a must, but if you have a simple financial model to track your investment based on key metrics, you might increase your chances of success.