Forecast your investment strategy and portfolio returns.
The Venture Investor Model is a spreadsheet template financial model to help individual and venture capital investors track and forecast their investments and portfolio. Track and forecast your portfolio strategy in minutes.
The Venture Investor Model enables future angel investors and venture capitalists to track existing investments, forecast future investments, and forecast the investment returns from their portfolio strategy. The model is flexible enough to use for any investment strategy (early- and/or late-stage) and any fund size. Market benchmark data is built into the model, but you can customize the model to fit your own market expectations. It has been used by 90+ venture capital funds (new funds, existing funds, early and late-stage), angel investors, family offices, accelerators, and incubators.
Why I built this
As a former venture capitalist and a current consultant to multiple funds, I’ve built many versions of portfolio tracking and forecasting models, and I wanted to share what I’ve built to provide a better structure for investors for tracking and forecasting.
How it Works
- Download Instantly - The model is available instantly after purchase; you will get an instant download link as well as an email with a download link. The model is a Microsoft Excel ™ file that can be used with many spreadsheet programs, including Google Spreadsheets ™. Re-download the model anytime; and additionally, any new updates to the model will be emailed to you automatically, for free.
- Input your most important assumptions - The model is already customized for a new venture capital. Start using the model by inputting the most important assumptions on the Dashboard, and the model will create a set of projections for a new fund instantly. For portfolio tracking, the process is different: input the check sizes, valuations, and ownership positions of your current investments, and modify the assumptions to either forecast just the current investment portfolio or to include future investments into your forecast.
- Refine your Forecast - After you have input your most important assumptions, go into the detailed assumptions to fine-tune your model. Every input - variables with modifiers, growth rates, or manual inputs - can be modified and the model will update instantly. All formulas are open and editable, and thus the model can be customized further by changing how certain calculations are performed, and you can add in calculations for items specific to your business. In this way, the model is easy enough for someone with no knowledge of spreadsheet modeling to use, but can be infinitely customized with knowledge of Excel and fund mechanics.
- Understand your Forecasts - The model automatically creates summaries and graphs of key financial and operational metrics Review the summaries and forecasts to understand what they say about your business, and use them for pitch and presentation materials.
- Need Help? - I also provide email customer support for free to answer questions on how to use the model, explaining the structure and its results. If you would like more help in getting started with the model or deeper strategy considerations, market development, competitive positioning, or fundraising, I also offer advisory services. Details here
More Excel templates and resources from the web, see my list of free Excel templates and financial modeling best practices.
Key Assumptions and Market Data
The model is built to be easy for you to use to modify the specifics of your fund, and also includes many assumptions about the venture market from publicly available data sources, but gives you the flexibility to make your own modifications to how you see the venture industry changing, from exit valuations to management fees and beyond. Key inputs include fund size, total capital invested, average check size, number of investments, follow-on allocation, investment horizon, management fees, GP fees recycling (optional), carry (optional), hurdle rate (optional), and more (More about how to input assumptions here.)
A couple key notes:
- Stage-agnostic: the model works for any investment strategy or stage. It’s not just for Seed, or A, or any particular strategy, but is completely flexible that allows you to select the stage you want to invest in, the check size you are targeting, and the fund size, and the model recalibrates and calculates the deals automatically. Many investors have used this to model an individual fund, a series of funds, or a fund-of-funds.
- IRRs: Many venture models create forecasts of returns using multiples, but not internal rate of returns. This structure forecasts IRRs based on an investment strategy that you define: portfolio allocation, average check size, number of deals over a period of time, follow-ons or not, and a distribution of exit multiples that you assume.
Dashboard and Returns Summary
Type in the details about your fund size, your average check size and your follow-on strategy, and model computes your portfolio and returns automatically. You have the flexibility to determine your expectation of how many wins and losses you will have by directly editing the distribution of exit multiples on this sheet, and model will recompute deals and returns automatically. The model also reports investments, proceeds, residual value and more key fund metrics in a standard fund cash flow chart.
The model is built to allow you to track your investments - equity and convertibles notes - and automatically update your forecasted investments. For example, if you want to track your existing investments and forecast future investments, the model will automatically update your forecasts (remaining funds to invest and # of future deals, and returns) based on new investments you enter into the model. It’s simple to manually input the parameters of your deals and update it for new investments and new rounds. (More about how to track existing investments here.)
In the back-end, the model computes out your forecasted portfolio and forecasted returns. Flexible enough to easily encompass any stage, any investment strategy, any distribution of wins and losses you desire. Creates an estimate of investments and proceeds over a period of up to 20 years. (More about the methodology here.) Calculates key fund metrics and ratios such as contributions, distributions, Paid-In Capital (PIC), Distributed to Paid in Capital (DVPI), Residual Value to Paid in Capital (RVPI), Total Value to Paid in Capital (TVPI), gross multiple, net multiple, IRR (GP and LP), and many other applicable performance metrics.
Financial Statements (NEW)
The model uses the investment and capital forecasts to create a set of consolidated financial statements for the fund or portfolio, consisting of a statement of financial condition, income statement, and statement of cash flows.
The model also calculates the operating costs from running the management company that operates the fund. Salaries, travel, rent, marketing, and many more cost line-items are built in. Easy to modify to include additional cost items you may have.
Model Customization and Advisory
Please note that the model may require customization for your unique operations or investment strategy. In addition to customer support, I also offer advisory services to help with customization and personalization of the model, as well as completely custom models if you have a different need.
I have also worked on a project and retainer basis to support strategy and execution, involving investment strategy, due diligence process, market development, and deal analysis, as well as portfolio tracking and forecasting. I also support angel investors and funds as an outsourced CFO to manage portfolio tracking and investment performance. If you are interested in learning more, email me at firstname.lastname@example.org.
- Instant Download - one .xlsx Excel file. Immediately after purchase you will receive a download link and an invoice for your records.
- Updates to the model are free, and the model can be re-downloaded at any time
- Credit/Debt Cards and PayPal accepted; all transactions are SSL secured and no payment details are stored by Foresight.
- All inputs and formulas are clearly labled; all formulas are open for editing and can be changed by user (i.e. no locked cells)
- Works for any currency; Foresight models have been used by entrepreneurs from over 71 countries
- Use in Microsoft Excel, Google Docs, and other spreadsheet programs
- If applicable, VAT is extra
- Bulk license purchases available, details here