Tech Forecast Financial Model -- 2
Budget: ₹100 – ₹400 INR
Prepare a 5-Year Financial Model
Objective: Prepare a comprehensive 5-year financial model for the company described
below, including all key financial statements and assumptions.
Background Information
• The company is an early-stage start-up seeking to raise $500,000 in its current round
of funding.
• Product launch is expected to be completed within 4 months of raising funds.
• Revenue Model:
•- Banner Advertisement: $0.10 per user
•- Subscriptions: Monthly $10 | Annual $100
• Revenue Timeline:
•- Banner Ads: begin 6 months after launch
•- Subscriptions: begin after 50k registered users
• User Projections:
•- 200k users in Year 1 post launch
•- 5% of users expected to adopt premium accounts
• Use of Funds:
•- Marketing: 40%
•- Salaries: 40%
•- Operating Expenses: 20%
• $500,000 provides a runway of approximately 18 months
Task Requirements
• Develop a 5-year financial projection (monthly breakdown for Year 1, annual for Years
2–5).
• Prepare the following statements:
•- Revenue Assumptions Sheet
•- Cost Assumptions Sheet
•- Monthly & Annual Profit and Loss (P&L;) Statements
•- Monthly & Annual Cash Flow Statements
•- Balance Sheet
• Ensure assumptions are clearly stated and linked to the model (e.g., user growth, ad
revenue, subscription uptake).
• Highlight the impact of fundraising on runway, cash flows, and scalability.
Submission
• Format: Excel (preferred) or Google Sheets
• Include a one-page summary highlighting key insights from your model
• Naming convention: _FinancialModel
Evaluation Criteria
• Clarity of assumptions and documentation
• Logical structure and accuracy of financial statements
• Depth of analysis in projecting 5 years of operations
• Ability to demonstrate business viability and investor perspective
• Presentation of results in a clear and concise forma
Objective: Prepare a comprehensive 5-year financial model for the company described
below, including all key financial statements and assumptions.
Background Information
• The company is an early-stage start-up seeking to raise $500,000 in its current round
of funding.
• Product launch is expected to be completed within 4 months of raising funds.
• Revenue Model:
•- Banner Advertisement: $0.10 per user
•- Subscriptions: Monthly $10 | Annual $100
• Revenue Timeline:
•- Banner Ads: begin 6 months after launch
•- Subscriptions: begin after 50k registered users
• User Projections:
•- 200k users in Year 1 post launch
•- 5% of users expected to adopt premium accounts
• Use of Funds:
•- Marketing: 40%
•- Salaries: 40%
•- Operating Expenses: 20%
• $500,000 provides a runway of approximately 18 months
Task Requirements
• Develop a 5-year financial projection (monthly breakdown for Year 1, annual for Years
2–5).
• Prepare the following statements:
•- Revenue Assumptions Sheet
•- Cost Assumptions Sheet
•- Monthly & Annual Profit and Loss (P&L;) Statements
•- Monthly & Annual Cash Flow Statements
•- Balance Sheet
• Ensure assumptions are clearly stated and linked to the model (e.g., user growth, ad
revenue, subscription uptake).
• Highlight the impact of fundraising on runway, cash flows, and scalability.
Submission
• Format: Excel (preferred) or Google Sheets
• Include a one-page summary highlighting key insights from your model
• Naming convention: _FinancialModel
Evaluation Criteria
• Clarity of assumptions and documentation
• Logical structure and accuracy of financial statements
• Depth of analysis in projecting 5 years of operations
• Ability to demonstrate business viability and investor perspective
• Presentation of results in a clear and concise forma