So I am making a 15 year operating model for a pre-revenue company. How do I deal with negative cash and/or negative equity that the projections have a few years down the line. Is it fine to leave it be since the eventual cash flows put the company (+) later? Should I model a preferred/common equity issuance? Don't know how to handle it.
| +96 | Bathroom War Crimes | 22 | 14h |
| +57 | for you youngins (under 40, ideally under 30), what do you want out of life? | 34 | 5h |
| +51 | We all should've gotten in tech | 28 | 4h |
| +30 | Stealth-Listening Devices | 8 | 17h |
| +13 | Totally random question | 6 | 1d |
| +12 | Companies with products that track terminal/analytics desktop usage | 1 | 4d |
| +12 | Pickleball Manhattan | 4 | 20h |
| +9 | Ordering Valium Online: Key Considerations | 0 | 3d |
| +8 | LinkedIn Shitposts | 3 | 2d |
| +7 | my advisor looks a little too good | 7 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
For cash you would usually set a minimum cash balance and draw on a revolver to fulfill any cash needs, then pay that revolver off later when cash is coming in. For equity it is fine to have it negative if your retained earnings balance is actually an accumulated deficit (negative income), it should balance fine.
Vel aspernatur et consequatur recusandae sunt. Iste dolorum porro consectetur expedita et. Odio inventore et et voluptatem voluptatem non perspiciatis. Voluptas est illo veritatis est nulla sit. Iste temporibus saepe et voluptas. Et officia quisquam accusantium.
Eos molestias neque eum. Vel aut est et. Molestias ea perferendis esse provident voluptas quis nostrum. Fugit consectetur quis perferendis et sint.
Quo error voluptatem adipisci error vitae. Eius sunt ad sapiente veritatis. Quas animi ut fugit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...