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How-To 2 of 3 - How to track your venture and angel investments

Explaining how to use the Existing Investments sheet

This is part 2 of a series to help you use your venture investor model template. Here’s the full series:

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The venture investor model combines the ability to forecast a portfolio with the ability to track an existing set of investments.

The “Existing Investments” sheet allows users to track individual investments - investments they want included in the fund, investments that have already been made under the fund, follow-on investments, etc. - by round, date, amount invested, valuation, and then track new valuations, exits, and endings to create updated valuations and measure unrealized gains in valuation and realized proceeds. 1

Existing venture investments

This also automatically rolls into the forecasted portfolio - new investments you make can reduce your forecasted invested capital if you like - and the model will combine your existing and forecasted investments and returns into one single set of investments.

Note, this is not a detailed cap table management system, there are good software tools out there for that. Or, if you’re looking to track an investment portfolio deeper by monitoring the operational performance of your investments, I suggest you check out Visible.

I left a couple sample investments in the model to provide a guide. The key is to input each investment round - i.e. each deployment of capital - and not overall capital into a company, because you will want the valuation and timing of each round to be set appropriately. Here’s the basic inputs:

  • New or Follow - whether the investment is a new investment or a follow-on round
  • Date of Investment. The year and half (H1 or H2) will be set by formula if you copy the formula from the samples.
  • Amount of investment in that round
  • Equity or Convertible. The important thing is to track the cash flows appropriately. If a convertible note ends up converting, it’s important to handle the conversion accurately by accounting for the initial investment date and not double-counting total capital invested.
  • Total round size, pre-money and post-money valuations
  • Share prices and ownership. For all intents and purposes, the share prices is the most important part for the exit calculations, because the valuations and exit proceeds are calculated from the increase in share price * share price for each investment. If you don’t know the share price, you can input fake numbers for share prices and total fully-diluted shares and the implied valuations and exit valuations can be calculated accurately.
  • Once you’ve input the investments, you can also track the results - any companies that have folded, any exits and realized proceeds, and the implied valuations to-date of the rest of the past investments.

Explaing the existing investments tracking

Now that you have your assumptions set and your existing portfolio constructed, let’s discuss how the model calculates investment returns, multiples and IRRs.

  1. If you want to use this model for ONLY tracking current investments, you can zero out future invested capital by changing the fund size assumption to simply be the total capital invested to date. That can be done by linking the fund size assumption on the Dashboard page to the total capital invested (to-date) sum on the Existing Investments sheet. 


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