- To build a financial model for a startup
- I want to budget for Operating Expenses (OPEX) for different stages of funding eg. Friends and Family, Pre-Seed, Seed etc…
What I tried:
Created a category for Venture funding with amounts and dates of the funding.
Applied the Venture funding category to operating expenses eg. Marketing spend
Allocated an amount to Marketing Spend for each stage of venture funding eg. Pre-Seed = £200, Seed = £500
Applied the category to each of the line items in the OPEX calculation.
What I Got:
Because there wasn’t an end date on each stage of the venture funding it applied the amount allocated to marketing in perpetuity.
However I wanted to step up the amount for each funding round instead of adding together the amounts allocated to the pre-seed, seed stage etc
The Work Arounds:
Manually inputting the amounts allocated to each month, however, if the the date of the funding changes I’d have to manually change the inputs.
Instead of allocating total amounts spent I could just allocate an incremental spend at each funding round (assuming it’s always an increase)
I could add another variable called end date for each round which could be used in the function to set a date when the amount allocated to the financing round should no longer be applied.