Top 6 Financial Modelling mistakes
- 3 days ago
- 1 min read
I’ve reviewed 100's of financial models — and these mistakes keep showing up.
If your model has any of them, investors will notice.
Swipe through to fix them before your next raise 👇
top of page
%20(1).png)
Investor-ready financial modelling
More Resources
Should you use AI in financial modelling?
AI in financial modelling
How do you value a pre-revenue business?
Why £3m? I get asked a lot about how to value a pre-revenue business. In order to generate this it can help to think about how much Angel investors are looking to make from their initial investment. Realistically, it’s a 7 year time frame to exit. So at 35-40% pa (IRR) for the high equity risk, compounding for 7 years, that equates to c.10x their money. Yes we’d all love a 100 bagger. But let’s assume 10x. So, what is a “realistic” exit value? £30-40m? Maybe more. But that’s
What are the biggest drivers of valuation in your financial model?
Here is a list of some of the key metrics that investors will consider when they assess both your business and your financial model; % of revenue that recurs Monthly/annual revenue growth rate Gross margin % Gross revenue retention % Net revenue retention % LTV/CAC ratio Pipeline as % of forecast revenue Burn ratio Magic number Rule of 40 ARR / Revenue per employee
Let’s discuss your financial modelling needs
bottom of page