Financial forecasting for startups is the practice of predicting the future financial performance of a business. It involves estimating future revenues, expenses and cash flow in order to assess the financial health of a company and identify potential opportunities or risks ahead. By combining financial data from the present with projections based on past trends and industry research, financial forecasting gives startups a better view of their expected performance, allowing them to make informed decisions about growth and investments. Forecasting can help entrepreneurs mitigate risk, secure financing and scale operations, ensuring their startup remains financially healthy for years to come.