Skip to content
  • Approach
  • Team
  • Portfolio
  • Content
  • FAQ
  • Contact
  • Approach
  • Team
  • Portfolio
  • Content
  • FAQ
  • Contact

Content

MATH 101 Video
July 18, 2019

MATH 101: Financial Modeling Part 2 – The Power of a Financial Model

  • By Troy Henikoff

Now that you know what a financial model is, it’s time to demonstrate the power of it. In today’s video Troy demonstrates this using a financial model for a fictitious company called “Dollar Cave Club”. Find out how to use your assumptions to predict what could happen in 5 years.

2 Responses

  1. Andy says:
    July 21, 2019 at 1:58 am

    Hi Troy, well done on the video and the spreadsheets look amazing. I wish mine could look that good. At 4:50 the churn rate is set at 8% and the cash balance falls, it would be nice to have a quick explanation as to cause(s) for this. Covering these levers will help entrepreneurs identify those to discuss with VCs if the topic comes up. Personally, I would like to explain "If the churn rate is 8% revenue declines due to so and so…" Thanks!

    Reply
    1. Troy Henikoff says:
      July 21, 2019 at 1:39 pm

      Andy, Thanks for the comment! It is tough as I am trying to keep these videos short and concise, but there is a LOT of additional info to cover! When the churn rate goes up, and you are still paying the same amount to acquire the customers, your spend (Marketing) does not change, but your revenue goes down. Since the revenue from each customer that you have goes down, you have less cash at the end of the day. I hope that makes sense.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

PrevForcing Mechanisms
Coffee Conversations: TeamNext

Learn more about who we are,
about our formula for shared success
or about our portfolio

  • Home
  • Approach
  • Portfolio
  • Team
  • Home
  • Approach
  • Portfolio
  • Team
  • Contact
  • FAQ
  • Content
  • Investor Portal
  • Contact
  • FAQ
  • Content
  • Investor Portal

Follow Us On Social

Twitter

© 2023 MATH Venture Partners Management, LLC

  • Privacy Policy
  • Terms of Use
  • Privacy Policy
  • Terms of Use
Menu

Home
Approach
Portfolio
Team
Contact
FAQ
Content
Investor Portal

Legals

Privacy Policy
Terms of Use

Follow Us On Social

Twitter

© 2023 MATH Venture Partners Management, LLC

  • Approach
  • Team
  • Portfolio
  • Content
  • FAQ
  • Contact

Follow us on Social

Linkedin Twitter