Pro Forma

Pro Forma financial statements are forward-looking projections used for planning and decision-making. They include projected income statements, cash flow statements, and balance sheets based on assumptions about growth, pricing, hiring, and expenses. Startups use pro forma models to forecast runway, evaluate scenarios, and prepare for fundraising. These projections are not actual results but are built on reasonable assumptions to guide strategy. Investors often review pro forma statements to assess expected performance and understand how capital will be used.