Financial Modelling & Fundraising Insights

AI in financial modelling

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

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

All the models that I build follow a standardised approach to formatting that is commonly accepted in financial modelling and finance circles. I know there are others (Green for formula linked to other tabs, etc.) but for me they are overkill and clutter the model, visually. So I generally just use these three; Inputs - blue font in yellow background Outputs - black font in white background Actuals - blue font in white background

Have you tried the 𝗙𝟭𝟭 key? Select some data in Excel and hit F11.. and a new tab will instantly generate, displaying your selected data in graphical format - usually a bar or line chart. This is a great way to quickly visualise and assess key trends, errors, anomalies, etc. in your data. Does it for me!

You’ve built the financial model — but is it 'Investor-ready'? When you're heading into a fundraise, your financial model becomes more than just an internal planning tool. It’s your first impression and the first things investors will ask for, before they even meet you. As a financial modelling consultant and former VC investor, I’ve seen so many operating models fall short in fundraising because they weren’t built with investors in mind. Ask yourself: ✅ Do you have a clean,

𝗦𝘁𝗿𝗼𝗻𝗴 𝗺𝗲𝘁𝗿𝗶𝗰𝘀 = 𝘀𝘁𝗿𝗼𝗻𝗴 𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻. 𝗧𝗵𝗲 𝗹𝗮𝘁𝗲𝘀𝘁 𝗱𝗮𝘁𝗮 𝗽𝗿𝗼𝘃𝗲𝘀 𝗶𝘁. GLC Advisors' recent Q2 2025 Software Report confirms that investors continue to reward higher valuations to SaaS companies with strong operating performance across certain key metrics.. Enterprise Value/Revenue Multiples by Net Revenue Retention (NRR): >110% → 15.5x 100–110% → 4.9x <100% → 2.3x Enterprise Value/Revenue Multiples by Rule of 40: >60% → 14.1x 40–60% →

How big can your business really get? The answer is surprisingly simple — and kind of magical (if you’re into Maths like I am): 📈 Business size limit = New clients per year ÷ Churn rate (Assuming # of new clients and value per client stay constant) Let’s say you bring in 20 new clients a year and your churn rate is 10%. Then your total client base will eventually cap out at 200 clients. Forever. Interesting isn't it?! Why? Because as you grow, churn eventually equals new cl

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 👇 https://lnkd.in/efEXKyuY #financialmodelling #startupfundraising #CFOInsights