New updates and improvements to Foresight
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Update to the Angel and Venture Fund Portfolio Tracking, updating the
Actuals sheet for a calculation of GP catchup, to handle the situation where there is a preferred return and not GP catchup (no impact if not using the preferred return input).
Update to the Venture Capital Model, Annual Forecast, Detailed Investment Strategy, adding in prebuilt scenario analysis. Video with how to think about scenario analysis and how to use it is linked at the product page and inside the model, and below.
Forecastsheet row 7, so that it corrects the fiscal year for the
Summarysheet when the calendar year-end is not the same as the fiscal year-end. Previously, the
Summarysheet would sum up the years still using calendar years rather than fiscal years, a simple change to the formula on row 7 updates this.
Hiring Planso it uses the timescale from
Forecastsheet, instead of recalculating the timescale. All sheets link to the timescale from
Forecastso that they are all consistent, previously this one was independent but now it's tied to the
Get Startedfor the revenue calculations on
Revenuessheet so that the input for the starting number of revenue units is exposed on
Get Started. No change in model functionality, just a slight addition to make it clearer where to make that input.
Launched the Talent Collective to help users find professionals to assist with financial models for startups and funds, business plans, valuations, and more. Details here.
Adding Search to the header to make it easier to find content and documentation specific to your needs.
New addition to product pages, adding category groupings (all venture capital models and all startup models) to reviews and ratings. Previously the ratings and reviews reported the ratings and reviews for each product and all products, now I've added a third section (in the middle of the ratings options) that displays the category-specific ratings and reviews for that product's category.
Created a Changelog (this page!) to track updates to products, classes, and offerings from Foresight. This page will highlight improvements to the models by surfacing the notes in each model's Changelog to the website, as well as broader updates about the company.
Kicked off Cohort 7 of the Cap Table and Exit Waterfall Masterclass. Next cohort to be scheduled soon.
Kicked off Cohort 3 of the How to Model Venture Funds. Next cohort to be scheduled soon.
New opportunity for financial modelers to be listed for referrals for projects. Details at Working with Foresight
April 13, 2023
Hosted a free, live workshop on modeling anti-dilution and their impact on cap tables. Understanding how down rounds impact dilution is an important area for companies in today's climate, I covered the theory and practice in modeling anti-dilution protection, with practical examples for you to use. Download the slides and spreadsheet here.
For more on modeling cap tables, I teach the Cap Table and Exit Waterfall Masterclass, a four session course that dives deeper into the topic.
New post covering How to Model Hardware Businesses using the Standard Financial Model.
Exit Waterfall, introduced a new model settings at the top, to set the formula structure in a few situations. Basically, some aspects of the
Exit Waterfallcreate circulars that can be difficult for Excel and Google Sheets to calculate correctly (yes, spreadsheet programs have limitations, especially when it comes to circular references). By default, the model uses simpler formulas unless the more advanced options are required, for example for pari-passu or for down rounds (introduced in the previous version), in which cases the model turns on the more complicated formulas. Hopefully this makes it better for a wider range of people to use without issue, and still keeps the more advanced functionality for those that need it.
Exit Waterfall, changed the liquidation preference calculation for each share class to use the proceeds per share to common instead of the residual per share from the section above. The previous method did not work as well in conditions where the liquidation price per share decreased in future rounds. This method does make the calculations even more circular, but more robust for that situation.
More at Modeling Anti-Dilution
Forecastdefault (thank you to user for finding this).
This was a webinar with Tactyc on how to use the forecast you created for fundraising your venture fund to actively manage your investing activity.
Tactyc is a platform for forecasting and scenario planning platform for venture capitalists. The software enables funds to construct, manage and forecast venture portfolios and empowers GPs to be more data-driven in capital and reserve allocations. Learn more at Tactyc.
Forecastto add to the SUMIFS to also look for Cost of Sales, so that it didn't accidentally pick up advertising and marketing costs used for CAC analysis.
Revenuesbuild (with additional assumptions on
Get Started) to allow for a % of new revenue units to select two different churn / repeat cycles with separate revenue assumptions. This allows you to segment new customers/users/subscribers/clients into two separate bases, allowing you to assume annual/monthly billing, for example.
Statementssheet to include previous period, so that the formulas are change per period + previous period (Thank you to user for finding this; while the Starter Model shares the same build for the
Statements, this was only in the Standard Model).
Get Started, E26 to calculate the number of follow-on checks differently for the Venture Investor Model. No change to returns or cash flows, no other impact to the model other than reporting the number of follow-on checks differently.
Forecastsheet to include a new input line for "Changes in Accounts Receivable", and edited the accounts receivable calc to use that amount if used in the model. What this does is make it easier to use the actual changes in accounts receivable in the model; previously you had to compute cash collected to back into the change in accounts receivable, now it will do it directly using the change in AR you calculate from your actual balance sheet
Forecastsheet to correct an error introduced in previous version. Simple to change by adjusting those two lines.
Key MetricsSheet (focused on SaaS businesses) and a few new SaaS-specific metrics on the Forecast sheet. Added new
Hiring Plansheet to aid in detailing a hiring plan by putting it on a separate sheet.