Changelog

• Extended the Drivers, adding new functionality to the drivers to add max value, ending period, and additional flags. This required adding columns to Forecast, Statements, Hiring Plan, and Revenues sheets
• Adjusting the formatting of the Statements, Summary, Snapshot sheets to switch signs for cash inflows and cash outflows. Done to increase the separation between the Forecast sheet (calculations) and Statements and other presentation sheets. Did not switch signs on Budget or Breakdown sheets at this time.
• Added prebuilt calc for interest income to Forecast sheet (higher interest rates FTW)
• Added a prebuilt line for the Sales (Optional) section on Revenues sheet to be added into the growth channel, and added a yes/no toggle on get started to enable that section. No change in functionality, just making the fact it exists as an option a bit easier to find by putting it on Get Started, and separating it out of the Manual Input line in the Growth calculations on Revenues makes it clearer how it works in the model.
• Added a category for Interest Income and Dividends to Forecast and Statements sheet, to improve reporting capabilities for businesses.
• Added timing and placeholder flags to the timescale used on Forecast, Revenues, and Statements, and replacing the previous formulas that used blanks to "end" or "blank out" the forecast after the custom end of the timescale. This replaces the way the model handled timescales that were < 72 periods in the Get Started assumption for number of periods. Now the model will no longer blank out calculations after the assumed period, but will calculate zeros, using the sheet more as a calculation page than a presentation page, a better structural approach. This will have little impact to how most people use the model, but will help those that want to model < 72 periods using the model.
• Bug fixes in amortization calcs (to properly account for value of fully amortized assets), VAT (switching signs on the accrual and disbursement, from switching the signs on the income statement), retained earnings (properly add in the previous y), Breakdown sheet (unallocated other expense, other income, depreciation, amortization, interest income, interest expense, taxes)

The biggest changes here were extending the drivers, switching the signs, and implementing the timeline flag, while also eliminating the use of the timeline test to output blank cells past the input number of months to model on Get Started. This involved changing > 95% of the formulas on Forecast, Revenues, and Statements, so it was a massive edit. That said, moving to the new base is not required, although if you stay with your base fixing the retained earnings bug is recommended.

• Created a video to walkthrough how to add additional calculation blocks to extend the Exit Waterfall for more share classes, and created Exit Waterfall, Extended sheet with two additional calculation blocks.

• Edited Forecast sheet to change the default debt amortization schedule, with a change to the interest expense and principal payment lines, no impact unless using interest-only payment or balloon payment, in which case the interest expense during interest-only period is slighly larger, and the balloon payment input now offers more realistic method.

A couple specials for Black Friday this year:

• Beginning Cap Tables is on sale through Dec 6, 2023, 12 PM Eastern Time for $9 ($90 off the usual $99 price, no discount code required). This provides immediate access to the most recent recorded session plus registration for the next live session on Dec 6, 2023 at 12 PM Eastern time (Zoom details after purchase).
• BLACKFRIDAY for 25% off paid templates (not pay-what-you-want templates), which includes all Standard Financial Model variants, the Starter Financial Model, the Venture Capital Model, Intermediate Portfolio Construction, and both variants of the Venture Investor Model, as well as the courses How to Model Venture Funds, the Cap Table and Exit Waterfall Masterclass, Intermediate Cap Tables, and Intermediate Exit Waterfalls, valid until November 29, 2023 at 02:59 AM Eastern time.

Terms and conditions at Coupons.

Added two new products by Graph Advisors:

• Venture Investment Tracker, an investment pipeline and portfolio company CRM tool built for Airtable
• Data Room Checklist, a Google Doc and Notion page checklist to help emerging venture capital managers provide a data room for prospective limited partners

Change to all Venture Capital Models:

• Edited Forecast sheet, adding a toggle(checkbox in Google Sheets, TRUE/FALSE in Excel) to choose whether the GP commit into the LP capital in the fund is charged management fees. By default in previous model versions the GP commit incurred management fees, by default now it does not, but there is a checkbox to toggle the treatment. Added one new line, and edited Management Fees line.

• 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.

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