Financial modelling at VC firms

Hi guys:

Can some of your shed some lights on what kind of financial modelling is used and required at VC firms please? Is it mostly simple 3 statement model +DCF, that's it? I guess one would also need to learn how to model fundraising activities (debt, equity, asset sales etc), is that fair to say?

Thank you!

 

My good friend's a VC - he said unless it's late stage they don't really model. It's much more about meeting people and "getting" them / their ideas.

If you're interviewing for an associate position be aware that you will spend your days meeting teams and that's it.

In terms of reading, I'd say study PGs blog - www.paulgraham.com and read http://www.amazon.co.uk/Term-Sheets-Valuations-Intricacies-Valutions-eb…

Also http://www.amazon.co.uk/Angels-Dragons-Vultures-Simon-Acland/dp/1857885… is a fun read

gl

The way Ah see it, is that it took a revolution f a bihllion people for your darn short to work out!
 

Burn rate.

-If you have a solid management team -who have a sensible strategy -to take a good product -out into a decent sized addressable market

....then the question is how much is it going to cost you to get there.

This is important. You can have all 4 above ingredients for a great growth business, if you low ball the cost by 400k that's an architect and 3 bus devs away from success and you may as well not have bothered.

 

I work at a fund with a dual mandate to make investments that provide both strategically relevance to our LP's as well as solid financial returns. It'd be hard to go into detail without giving away my place of work. PM me if you this is what your looking to learn about and want to try and talk through stuff.

"If you want to succeed in this life, you need to understand that duty comes before rights and that responsibility precedes opportunity."
 
TheBigBambino:
I work at a fund with a dual mandate to make investments that provide both strategically relevance to our LP's as well as solid financial returns. It'd be hard to go into detail without giving away my place of work. PM me if you this is what your looking to learn about and want to try and talk through stuff.

PM sent.

“...all truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.” - Schopenhauer
 

Nisi officiis et earum cupiditate rerum id totam. Eaque sit et sit aut et. Ut placeat autem atque fugit qui.

“...all truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.” - Schopenhauer

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