Startup Funding Espresso Back of the Envelope Financial Model
Back of the Envelope Financial Model Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In setting up a fundraising plan at a high level, you set a revenue target five years out.\xa0 You then draw a line from today to that five-year mark.\xa0 Your fundraise and hiring plan will come from that. To calculate this quick and dirty version of the financial model, follow these steps: Start with current revenue. Apply your organic growth rate and map out your top-line revenue for five years. Calculate your revenue per person metric. Apply your expenses for five years using that revenue per person metric. Identify the negative profit line.\xa0 Set your fundraise to cover the negative working capital. If the amount is greater than one million dollars, then break the fundraise into two rounds. This will give you a rough idea of how much you need to raise and how many people you will need to hire.\xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Please , share, and leave a review. Music courtesy of .