the financial model for a start-up is an exercise in creativity and forward-thinking. it’s an opportunity for entrepreneurs to let their imagination run wild, finally voicing their visions on paper. as startups are generally risky investments, the financial model is a tool that helps investors evaluate the venture before committing funds. the main purpose of the startup financial model is to show investors that your company can reach profitability within a reasonable time frame and make them enough money to justify their investment.