Financial Modeling Made Easy by Andrew Wood & Jacob Gordon

Financial Modeling Made Easyby Andrew Wood & Jacob Gordon Using numbers to tell your story

Welcome to Financial Modeling Made Easy Andrew Wood Jacob Gordon Entrepreneur's Perspective A Venture Capital Perspective

What is Financial Modeling? Common Definition: A financial model is a set of assumptions about future business conditions that drive projections of a company's revenue, earnings, cash flows and balance sheet accounts. In the end it is a dynamic tool. Our Definition: It is a tool in your investor-search toolkit to tell your story with numbers. It can create alignment across the team and forces you think about the drivers in your business. The ultimate goal of any business is to generate cash. The financial model tells others how you plan to do this.

Let’s Get Perspective • You do not have to be an excel ninja. • A Financial Model is not real and does not drive value? • The only valuation that matters is the EXIT value. • Financial modeling is a continuous exercise that is never really done. • You need to know when to stop and who to elicit feedback from.

Investor Search Process – Other Tools • Send Executive Summary to generate interest (excerpts) • Non Disclosure Agreement • Meeting to present the pitch deck (try to get this face to face) • Follow up with Full Pitch Deck, Business Plan and Financial Model • Term Sheet, Cap Table, Private Placement Memorandum • Due Diligence (Defend your Model)

Steps in building a model

Best Practices

Now let’s actually do some modeling… followed by Q&A

Financial Modeling Made Easy by Andrew Wood & Jacob Gordon