Crunchbase News: The Forecasting Mistake That Costs You Funding

In this article, we discuss the common forecasting mistake that turns investors off: using top-down projections based on market size (e.g., "if we capture 2% of a $4B market...").

While top-down may look impressive on a slide, experienced investors see it as naive. It skips over the operational reality of building a business.

Instead, we advocate for bottom-up forecasting—building your revenue model based on real assumptions:

• How many customers can you reach?

• What’s your pricing?

• How fast can your team realistically grow?

Bottom-up models show you're execution-focused. They’re dynamic, transparent, and investor-aligned—helping validate your path to scale rather than just dream about it.

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