with a friend of mine, we will be applying to a governmental program that financially assists young entrepreneurs to start their own startup company.
Our project is a form of product recommendation system where site owners embedd our system to their sites and we will be sharing the revenue of the advertisement with our users. We plan to go live after 6 months of software and business development concurrently. I am well aware this sounds like Google Adwords but it is actually different.
Both of us are computer scientists thus we have a rather weak financial background. For the product we want to develop, we have been asked to do a rough estimation of 2 years of annual revenue of the company. We are having really hard time to make such predictions.
I will be grateful for any suggestion or any way to do such financial foresight for a brand new project.
Firstly, I do not know of any available data that would be a relevant.
Your financial projections at this early stage are going to be based on part guess, part estimate. Once you have actual data you can refine your projections, but that doesn't help you very much now.
The benefit comes from seeing how the numbers interact over a number of different scenarios. You end up with a range of different financial forecasts and ultimately it a case of using your best judgement as to how likely each one is.
Bear in mind the purpose of the projections. If they are for the purpose of applying for a government grant you might think about what they want the numbers to look like. Not much point adopting such a pessimistic outlook that you are rejected immediately. Not suggesting you lie, but within the range of possible outcomes there will be some outcomes that are better than others.