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The 5 Key Steps for Preparing Your Startup’s Financial Model for Fundraising

Part 1 of 5 in the “Financial Modelling for Startups” Series

Maximilian Bruhn
Oct 25, 2020 · 6 min read

Purpose and Structure: Organization is Everything

Before thinking in detail about the dynamics in your model, it is essential to reflect on the ultimate purpose of building it in the first place.

Introduction, Purpose, and Structure: Key Takeaways

A founder’s main task in fundraising is compellingly presenting and selling a bet to investors.

Purpose

  • Communicate your assessment of the basic assumptions, drivers, and relationships within the business case
  • Illustrate your way of thinking and planning
  • Build a foundation for further discussion

Structure

  • Organize your model into logical blocks (e.g., sales assumptions, cost assumptions, assumptions concerning other cash-flow relevant items)
  • Highlight your assumptions (e.g., through formatting) and separate input variables and outputs on different sheets (e.g., assumptions sheet, calculation sheet, output sheet)
  • Make the model easy to understand and audit by using only standard formulas and consistent formatting.

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Maximilian Bruhn

Written by

VC @ FinLab AG | FinLab EOS VC. Let’s connect on LinkedIN: https://www.linkedin.com/in/maximilian-bruhn-a97608148/

The Startup

Get smarter at building your thing. Follow to join The Startup’s +8 million monthly readers & +792K followers.

Maximilian Bruhn

Written by

VC @ FinLab AG | FinLab EOS VC. Let’s connect on LinkedIN: https://www.linkedin.com/in/maximilian-bruhn-a97608148/

The Startup

Get smarter at building your thing. Follow to join The Startup’s +8 million monthly readers & +792K followers.

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