Predicting your business is always tricky. Especially in cases where you have not yet started. A young industry with less than 10 years of overall history and high speed in technology development makes life no more easier. Still the VC guys want to get the full picture. They need a sense of security for things that will materialise in 3 to 5 years.

In one of my cases I'm seeking a seed financing for a startup. We have done the 5 year P&L and cash flow forecasts. Everything is cool expect that the final years include also licensing income. One of our potential investors who is not an expert in this particular field dropped me a mail the other day. He likes to know my future licensing partners (their names), the deal structures, prices, licensing policies and specific conditions and terms.

Links on determining cash flow projections... the most challenging part of a business plan for the business impaired.