A financial model isn’t just math — it’s your story in numbers.
For founders raising capital, a clear, credible model is mandatory. Investors don’t expect perfection. But they do expect logic, assumptions, and a path to scale.
A great model makes your business feel inevitable.
What a Financial Model Should Show
VCs look for models that demonstrate:
- Revenue potential
- Cost structure
- Unit economics
- Cash burn and runway
- Funding needs and use of funds
- Growth trajectory over 3–5 years
This isn’t just a spreadsheet. It’s how you prove your business works — and what capital can unlock.
Key Components of a Startup Model
- Revenue Model — How do you make money? (subscriptions, usage, etc.)
- Cost of Goods Sold — What does it cost to deliver your product?
- Operating Expenses — Headcount, marketing, tools, etc.
- Customer Acquisition Cost (CAC) — What does it cost to acquire a user?
- Lifetime Value (LTV) — What’s a customer worth over time?
- Runway and Burn Rate — How long can you operate with current cash?
Your model should match your stage. Early-stage = more assumptions, less precision. But the logic still has to land.
What Makes a Model Investor-Grade
- Transparent assumptions (not black boxes)
- Clean layout and design
- Clearly labeled tabs and formulas
- Scenario planning or sensitivity toggles
- Summary metrics that tell the story fast
If your model takes 30 minutes to explain, it’s not ready. If it drives clarity in 3 minutes, you’re close.
Tell the Capital Story
A great model answers the investor’s internal monologue:
“If I write this check, where does it take them — and what’s next?”
It should connect funding to milestones — not just cover your burn.
We build investor-grade financial models that drive clarity, not confusion.
Tailored to your business model. Ready for the data room.
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