New updates and improvements to Foresight

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  • Edited Forecast sheet for the Excel file download to fix a formula - calculation of share price per round - that was broken in the Excel download. No change to the Google Sheets version.

  • Added new category for Other Current Assets to Forecast, Statements, and Summary sheets, to provide an extra asset account to break it out from potentially amortized long term other assets.
  • Edited Forecast sheet to create a new build for Amortization of Other Assets, to match the structure for Depreciation. This was done to create a bit more flexibility in the assets and amortization accounts.
  • Edited Statements sheet to change the reporting of net income and retained earnings on the balance sheet; previously this reported current month net income, and each month (or each period, if using quarterly or annual timescale) it added net income to retained earnings. Changed so that it now tracks net income over a fiscal year, and adds to retained earnings at the start of the next fiscal year. No change to the net of retained earnings and net income, just a shift between them, to balance it out differently.

Change to all Venture Capital Models:

  • Edited Forecast sheet calculation of RVPI to estimate the value of carried interest. Previously RVPI was reported on a gross basis, while DPI was reported on a net basis, creating a TVPI that reflected a net DPI and gross RVPI, slightly overestimating TVPI because it did not estimate future carried interest incurred when the unrealized gains were realized. A small edit that removed the slight change in TVPI on the last period where RVPI goes to zero. Easy to replicate into any existing model by copying the new formula.

Celebrating a Milestone

A Foresight milestone: $1 million in sales from templates and tools. Details →

  • Edited Forecast sheet to add a new Runway calculation, to calculate the number of months runway based on cash at the beginning of the month and future expenses. The model calculates runway two ways, one just a simple current cash divided by net burn that month, the second way looking at how long current cash lasts based on future cash flows, thus accounting for changes in net burn in the future. Both can be valuable in thinking about runway.
  • New sheet called Snapshot, that is intended to help with analysis. Pick a date, and the model will report expected quarterly revenues, runway, cash in the bank at the end of the selected month, and create a table and chart showing major changes in cash over the previous 3 months and next three months from the selected date. Goal is to help with analysis, this is a first version and expect this to change over time.

Relaunch of the Standard Financial Model for Services. The release of this model leverages two key additions from the last couple updates to the Standard Model - adding seperate billing structures, and introducing bundling of new signups to start of revenues - in adding the last features necessary to make the Standard Model a good fit for services and consulting businesses.

Announced the next dates for How to Model Venture Funds and Cap Table and Exit Waterfall Masterclass, as well as the launch of cap table short courses.

Updates to the Standard Financial Model:

  • Formula rationalization, reducing use of OFFSET and replacing with INDEX. Goal is to reduce use of volatile functions and improve performance (speed of recalculations). Forecast, Revenues, and Hiring Plan sheets first edit, will replace more OFFSET over time.
  • Get Started and Revenues sheets, added new option for % billed upfront. Most cases it will be 100%, but in some cases (services, consulting, some enterprise contracts) there is a need for contracts to be paid at multiple times, on a non-every month or all billed upfront option. This implements a billing option where you can select to bill a % upfront in first month of contract, and the remainder at the end of the contract (on the last month of the contract)

Updates to the Standard Financial Model:

  • Edits to Revenues sheet to create a new "bundling" feature. line 114 calculates the conversions after the conversion lag, line 115 is a bundling input, line 116 calculates conversions after bundling. some businesses may make sales over time, but when the sales start may not be the same period, but may bundle them together into groups. an example is in education, where you often sign up users but don't start charging them until school is in session, for example. this input is designed to say "yes" or "no" using a "1" or "0", respectively, to say whether the conversions should flow through (a "1") or be bundled and held until the next event ("0" until the period for them to flow through into the next "1"). Kind of specific for certain businesses; if you don't understand it, then it doesn't apply to you :)

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).