# InSITE and Finply Join Forces

We are extremely excited to announce that Finply has recently been selected into the InSITE Fellowship Program. InSITE is a highly competitive leadership development program composed of exceptional graduate students at top universities who engage in semester-long consulting projects for emerging companies. We are partnering with InSITE DC and will be working with InSITE fellows between October and December. Our team of Georgetown University graduate students will work closely with us on a go-to-market strategy for Finply.

Meet the Team

Our team consists of four MBA students in the Georgetown University McDonough School of Business: Lauren Gibson, Lauren Jordan, Nikhil Manojkumar, and Tristan Hough. A brief description of each team member is listed below. …

# Finply 1.1

We have just released Finply 1.1! Finply 1.1 includes updates and new features making it even easier for you to build robust financial models for your start-up. Let’s take a look at what’s new.

Introducing sheets to Finply!

Finply 1.1 utilizes sheets similar to Excel. You no longer need to upload a CSV file as your data can be typed directly into the app. The built-in sheet is preconfigured with similar rows and columns layout to Excel as well as navigation functionality. To move to the next column, simply use the tab key or the left and right arrows. …

# Rule of 72

Above everything else, investors want to see a return on investment. How do you prove to investors that they will be profitable? Things such as a rock-solid business plan, a unique idea, and a strong narrative obviously help. However, nothing beats hard data. Numbers showing past success or projecting future profitability can speak louder than words. That is where the Rule of 72 comes in handy. The Rule of 72 is a quick, helpful formula that is used to estimate the number of years necessary to double an investment at a given rate of return. Calculating compound interest can be difficult for us humans, and the Rule of 72 is a simplification of this complexity. Finply has adopted the concept set forth in the Rule of 72, doing the difficult calculations for you while giving you exact numbers. …

# Iteration, Precision, and Voltaire

When building financial projections or anything at all really, it is important to keep in mind Voltaire’s simple but crucial norm: “the best is the enemy of the good.” In the start-up world, this has been flipped upside down in the most wonderful manner, with the concept of constant iteration. Start with something, anything, that you can get in front of your clients as quickly as possible. After you get their feedback improve on your original design, and repeat this process as many times as possible. …

# Eratosthenes: Right Time, Right Place, and Right Tools

## How lessons learned from discovering Earth’s circumference applies to entrepreneurship.

Eratosthenes of Cyrene was born in the third century BC. He used his extensive knowledge and tools to measure Earth’s circumference with an estimated error of less than two percent. The way he did it requires a little trigonometry, but if you want to dig deeper into this story, we used Douglas Hubbard’s book “How to Measure Anything: Finding the Value of Intangibles in Business”.

Eratosthenes was the head curator for the famous ancient library of Alexandria. He probably got to this post because he liked to read a lot. On a warm summer day in Alexandria, Eratosthenes read a book about a city about 600 miles south of Alexandria. The paper claimed that on that same day of the year, at a particular time of the day, the sun shined down on the well and without shadows, onlookers could see the clear water at the bottom. Eratosthenes looked around, found a well in his city, and noticed that there were shadows in the Alexandrian wells at the time given in the book. From this, he concluded that, as proposed by many before him, the Earth had to be round. He knew if he measured the length of the shadows of a stick of a chosen length in both cities on the day above and time, he could derive the curvature of the spherical Earth. The stick placed in Syene (the southern town) did not have a shadow, so he only needed the length in Alexandria to calculate Earth’s curvature. If he could measure the distance between the two cities precisely, he could extrapolate this distance and this curvature to figure out the circumference of the Earth. And guess what? …

# Reality is a Model

In his short story “Funes the Memorious,” Jorge Luis Borges proposes what would happen to a man who could remember everything (if you get a chance, please read the story and all short stories by Borges). The tail ends logically, but contrary to our intuitions, badly for his hero. As Funes grows older, he is forced to remember every little detail about every little thing every second. To escape his reality, the only real one, this icon must retire to a dark room to have some peace of mind. The rest can continue with our regular times, even in these abnormal times, because our brains simplify reality. …

# Are All Financial Models Wrong? Those Without Finply Might Be.

A common catchphrase around seed and VC investing is “the only thing we know for certain about financial projections is that they will be wrong.”

The rationale behind this commonly accepted nugget is that a revenue estimate of say, \$10,000 a month, won’t be accurate because revenue will probably be at least a few dollars more or less.

In this strict way, traditional models are in fact inaccurate, but if improved they are could be more useful. Think about how we don’t just dismiss extreme flood warnings just because the possibility of rain is not 100%.

At Finply, we want to break current limitations in financial modeling. So we have gone a step further, instead of single number projections, we have given users the ability to create range estimates for their projections. In the same spirit of weather predictions, our users can change the inputs of their models to create a probability function for their revenue. A model made with our apps, following the example above, is able to project revenue to be between \$8,000 and \$12,000. …

# What Is Financial Modeling And Why Is It So Difficult?

Many founders and entrepreneurs come from backgrounds outside of the accounting and finance worlds and find it cumbersome dealing with spreadsheets to forecast financials for their start-ups. Let’s demystify the world of financial modeling.

# What is Financial Modeling?

Financial modeling is the process where a person creates a story through the lens of numbers and mathematics. Models are often used to help predict the future and help organizations prepare for what the future holds. Financial modeling is incredibly important in new businesses or start-ups when the founders plan to raise money from outside investors. Investors often want to see some kind of documentation that outlines the business idea and present what the company is expected to make from a financial perspective. …