Making your financial models? Here are some tips to stand out.

Financial modeling is a crucial skill for startups, especially when it comes to attracting investors. A financial model is a tool that helps you project your future performance based on certain assumptions and scenarios. It can also help you plan your cash flow, budget, and valuation.

But how do you create a good financial model that will impress potential VCs? Here are some tips to get you started:

• Define your goal. Before you start building your model, you need to have a clear idea of what you want to achieve with it. Do you want to raise funds, test your market fit, or optimize your strategy, or just show the P&L? Your goal will determine the type of model you need and the level of detail you should include.
• Choose the right template. There are many templates available online that can help you structure your model and save time. However, not all templates are suitable for your specific business or industry. You should look for a template that matches your revenue model, cost structure, and growth stage. For example, if you are a SaaS startup, you might want to use a template that incorporates metrics like customer acquisition cost, churn rate, and lifetime value.
• Use realistic assumptions. One of the most challenging aspects of financial modeling is making assumptions about the future. You need to balance optimism with realism and back up your assumptions with data and research. You can use historical data from your own business or industry benchmarks to estimate your growth rate, market size, pricing, and expenses. You should also test different scenarios and sensitivities to see how your model reacts to changes in key variables.
• Keep to the standard. Your financial model should follow the best practices and standards of financial modeling such as documenting assumptions and sources for data, as well as keeping fonts, sizes, and colors consistent throughout the model. 
• Validate your model. Once you have built your model, you need to check its accuracy and reliability. You can do this by comparing your projections with actual results, performing a sanity check on your numbers, and asking for feedback from experts or mentors. You should also review your model regularly and update it as your business evolves or new information becomes available.
• Present your model effectively. Finally, you need to communicate your model to potential investors clearly and compellingly. You should prepare a summary sheet that highlights the main outputs and insights of your model, such as your revenue forecast, cash flow statement, break-even point, and valuation. You should also use charts and graphs to visualize your data and make it easier to understand. You should be ready to explain the logic behind your assumptions and scenarios and answer any questions that investors might have.

Financial modeling is not an exact science, but a skill that can be learned and improved over time. If the task seems daunting, join our event on August 24th to learn more about financial modeling and learn if a fractional CFO is right for you.

Maximize fundraising success with expert insights from a startup fractional CFO. We dive into the value of fractional CFOs and how their unique blend of expertise and experience can boost the odds of fundraising success

Topics Include:

• Unveiling the secrets behind effective financial modeling techniques that optimize financial operations and forecast growth trajectories that impress investors. 

• The importance of telling your story with numbers and which KPIs resonate the most with investors.

• Practical tips, real-world case studies, and actionable advice for founders

• Exploring the ways to craft compelling financial narratives that resonate with investors 

• Building robust financial models that highlight scalability, profitability, and long-term sustainability.

• Breaking down complex financial concepts into digestible insights for both startup founders and investors. 

Keane McCarthy has 10+ years of Investment Banking experience in financial technology, business services and software, real estate technology, insurance technology, wealth management technology, exchanges, and marketplaces.  His robust financial models highlight powerful financial information, third-party alternative data, market share statistics, pricing strategies, and applicable macroeconomic variables.   He’s worked with clients ranging in size from pre-revenue to Series C takes a highly customized approach and builds a strategy specific to their needs and goals.  

Join us on August 24th @ 1 PM EST! RSVP Here

Fundraising Demystified Episode #10 is Live!

In this episode, we had the pleasure of speaking with George Richardson, the CEO of AeroCloud, a cloud-native airport management & passenger processing platform. They've recently raised a $12MM Series A bringing their total capital raised to $16M+.

We talk about how George switched from being a professional race car driver to starting his own company, how they timed the fundraiser with only 2-3 months runway left, and the fundraising process that helped them book 100 investor meetings & close the round in just 3 months. George is based out of the UK and shares some incredible stories and advice with founders seeking capital.

Here are some of the main topics we covered:

1. The inspiration behind Aerocloud and its appeal in the market
2. Strategies for finding and attracting investors
3. Building a successful fundraising process
4. The importance of networking and connections in the fundraising world

 Now, let's dive into the key takeaways and lessons from this incredible conversation:

• Business is a process: George emphasizes that hitting your numbers and having the right intention are crucial for success.
• Network, network, network: George highlights the power of your network and how it can help you find seed investors and expand your reach.
• Co-investing and teamwork: The importance of having co-investors and lead investors lined up to create a strong team dynamic.
• Factor in legal processes: Founders need to consider that legal processes can take longer than expected, so it's important to plan accordingly.
• Selecting the right investors: George shares his criteria for accepting investors into their cap table, such as operator experience and a long-term mindset. Listen Here

Jason has already roasted 20+ decks during this weekly event. We have received incredible feedback from founders who had their decks roasted or just came to watch.

Click the link below to submit your deck to receive feedback on how a VC would look at it. This is a RARE opportunity, so don't miss your chance! RSVP Here

What the Experts Have to Say

Startup Financial Models - 12 Templates Compared

If you are lost with which template to use, this article breaks down the pros and cons of many different templates so you can see which is best for you. Read More

Making a financial model for your early-stage startup?

Great article for entrepreneurs who are looking to start building their models. This article goes through some items VCs like to see.  Read More

The ultimate guide to financial modeling for startups

This is a very long article that breaks down many complex items of modeling for those who have never done financial modeling before. Read More

If you're ready to raise capital, accelerate your fundraising process by upgrading to Premium. All premium clients receive a complementary consulting session with Jason Kirby, Managing Partner at Thunder. Upgrade Here

Let's stay in touch:

Written by Jason Kirby - https://www.linkedin.com/in/jasonrkirby
Subscribe to our weekly newsletter for market and industry news and tips when it comes to raising capital and growing your business - https://join.thunder.vc
Seeking to raise capital? Get your list of target VCs by creating a free profile here - https://web.thunder.vc
Looking to raise debt? Explore tailored debt options for free by completing a profile at https://debt.thunder.vc