Financial Models
Startup Venture Economics
While financial modeling addresses the development of standard financial statements, which play a critical role in managing business operations, Startup Venture Economics focuses on assessing the core venture model.
We establish a businesses ability to capture value with a product or service and analyze how the risk and reward from this business model is distributed between stakeholders, such as founders, investors or other partners.
In short, we assess how a business venture is going to make money and how it is going to be financed. Typical outcomes in a venture economics model include; Free Cash Flow, Contribution Margin Analysis, Burn Rate, OOC (Out of Cash),TTC (Time to Close) and Potential Deal Structuring and Financial Life Cycles.
We typically suggest completing a Venture Economics model prior to developing a full set of financial statements.