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Construct a Pro Forma Financial Model for a Software Startup
Jasper Ng
Jasper Ng
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Construct a Pro Forma Financial Model for a Software Startup

Forecast and model the financial performance of a high-growth startup.

Register today
Apply now
Tuesdays
 at
1:00
P.M.
 ET /
10:00
A.M.
PT
8 weeks, 2-3 hours per week
Beginner
No experience required
No experience required
Some experience required
Degree and experience required

Description

The ability to deconstruct and forecast the growth and quality of a business is foundational to a career in finance and investing. In this Build Project, you will mimic the work of a financial analyst and create a financial model that forecasts the trajectory of an early-stage software startup.

Alongside your project leader, you will build a 3-statement financial model that showcases future financial performance based on present and past business assumptions. You will familiarize yourself with software-specific accounting concepts like deferred revenue and accumulated deficit as well as spreadsheet modeling standards and techniques — all of which are skills used and valued by real finance teams.

Session timeline

  • Applications open
    May 27, 2024
  • Application deadline
    June 23, 2024
  • Project start date
    Week of July 8, 2024
    Week of
    July 8, 2024
  • Project end date
    Week of

What you will learn

  • How to build a 3-statement financial forecast of an early-stage startup using MS Excel or Google Sheets.  
  • How to utilize accounting concepts like deferred revenue and retained earnings as well as software-specific concepts like net revenue retention and annual contract value.
  • How to use MS Excel or Google Sheets formulas like INDEX/MATCH and SUMIFS/COUNTIFS and techniques like formula-fills and cell references.
Build Projects are 8-week experiences that operate on a rolling basis. Selected participants engage in weekly live workshops with a Build Fellow and 2-15 other students.

Project workshops

1
Introductions
2
Spreadsheet Fundamentals
3
Accounting Principles
4
Operating Expense
5
SaaS Metrics
6
Recurring Revenue
7
Model Consolidation
8
Presentations

Prerequisites

  • Basic knowledge of accounting: you should be able to distinguish between the income statement, balance sheet, and cash flow statement.  
  • Basic knowledge of MS Excel/Google Sheets: you should have an understanding of most ribbon functionality and basic formulas and shortcuts.  

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About the expert
Jasper Ng
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Jasper
's Linkedin

Jasper Ng is Chief of Staff at Arist where he works on strategic finance, operations, and special projects. Jasper leads all financial planning & analysis (FP&A) initiatives at Arist and has also worked in venture capital and corporate banking. He holds a degree in Economics.