Lindstrom: Startup financial models serve as truth serum on founder thinking
Brian Lindstrom · 38 - Investing in Healthcare Innovation: Insights from HealthX Ventures' Brian Lindstrom · Apr 8, 2025 · at 4:01
Brian Lindstrom, partner at HealthX Ventures and former CFO, explains how he evaluates early-stage startup financial models during venture due diligence.
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“But when I come in, I look at, I do look at the numbers and I really look at, really what I look at is the three to five year model. And to me, that model is truth serum. Now it doesn't need to be perfect. Most of our founders do not come up from a financial background. They may know somebody helps them with the model. That's wonderful. He or she. But what I look for is just, does it make sense? Is it, does it flow? Do margins look about right? How do they think about retention? How do they think about gross margin? How do they think about cash burn? And we're absolutely guaranteed that whatever was put in the spreadsheet is not going to be how it plays out over three years.”
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