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Recommended Software

Microsoft Excel or Google Sheets work well with Hemrock models.

Performance Metrics

Key metrics for performance reporting for venture capital funds.

Fund Economics Tool · Venture Capital Model (and 1 more)

Tokens

Translating tokenomics into a forecast of changing allocations over time.

Proratas

Details on what prorata rights are and how to calculate them in equity financing rounds.

Cap Table And Exit Waterfall Tool

Saas

How to configure the Standard Financial Model for SaaS: specific cells, segment structures, and AI prompts that point where the edits go.

Standard Financial Model

Ecommerce

How to configure the Standard Financial Model for ecommerce and DTC: specific cells, seasonality, inventory, and AI prompts that point where the edits go.

Standard Financial Model

Marketplaces

An overview of how to use the Standard Financial Model to model marketplace businesses.

Standard Financial Model

Circular References

What a circular reference is, how iterative calculations work in Excel and Google Sheets, and when (and when not) to use them.

Cap Table And Exit Waterfall Tool · Venture Valuation Tool

Special Purpose Vehicles

An overview of the tools, processes, and expectations around Special Purpose Vehicles (SPVs)

Fund Economics Tool · Venture Capital Model (and 1 more)

Hardware

An overview of how to use the Standard Financial Model to model hardware businesses, including hardware businesses with software business lines.

Standard Financial Model

Services

An overview of how to use the Standard Financial Model to model services and consulting businesses.

Standard Financial Model

Accruals And Payables

How the Hemrock models calculates accruals and payables

Standard Financial Model

Amortization

How the Hemrock financial models calculate the purchase and sale of assets and amortization

Standard Financial Model · Runway Tool

Anti-dilution

How to model anti-dilution for equity shareholders in the Cap Table and Exit Waterfall Tool

Cap Table And Exit Waterfall Tool

Best Practices For Financial Modeling

Principles for building models that hold up as they're used, shared, and extended. "All models are wrong, some are useful."

Breakdown

The Breakdown sheet goes beyond financial analysis to provide additional management analysis on the performance of the business, by automatically creating a profit and loss statement with each user-defined business segment in its own column.

Standard Financial Model

Budget

How to use the prebuilt Budget sheet to do variance comparisons between the forecast and actual results.

Standard Financial Model

Capital Expenditures

How the Hemrock financial models calculate capital expenditures and depreciation

Standard Financial Model · Runway Tool

Capital Budgeting

How to budget for invested capital and fees in the venture fund models

Fund Economics Tool · Venture Capital Model (and 1 more)

Capital Deployment

How to budget for deploying capital into investments, including investment time period, follow-ons, recycling, timing of capital calls, over time

Fund Economics Tool · Venture Capital Model (and 1 more)

Changelog

A quick note on the Changelog sheet in each model.

Standard Financial Model · Runway Tool (and 7 more)

Using Claude For Excel With Hemrock Models

Claude for Excel gives you an AI that reads and edits your spreadsheet directly. Pair it with a Hemrock model and you're editing proven structure, not generating from scratch.

Fund Economics Tool · Venture Capital Model (and 8 more)

Cohorts

How to use cohorts in building financial models

Standard Financial Model · SaaS Forecasting Tool (and 1 more)

Model Formatting

Here's how I use formatting to identify and denote the difference between assumptions and calculations in the models.

Fund Economics Tool · Venture Capital Model (and 7 more)

Safes And Convertible Notes

How to model convertible notes, premoney SAFEs, and postmoney SAFEs in the Cap Table and Exit Waterfall Tool

Cap Table And Exit Waterfall Tool

Coupons And Discounts

Active discount codes, purchasing power parity, and bulk pricing.

Debt

How the Hemrock financial models handle debt, principal repayment, and interest expense

Standard Financial Model · Runway Tool

Deferred Revenue

How the Hemrock financial models forecast deferred revenue

Standard Financial Model

Forecasting Drivers

How to use the prebuilt Forecasting Drivers to easily create dynamic forecasts.

Standard Financial Model · Runway Tool

Equity

How to model new equity rounds in the Cap Table and Exit Waterfall Tool

Cap Table And Exit Waterfall Tool

Setting Timescales

By default, the models are built by month for either 3 or 5 years. Here's how to extend them if you need to model a longer timeframe.

Standard Financial Model · Runway Tool

First Fund Close: Pre-close, Close, And First Capital Call

Where Pre-close burn, organizational expenses, and the first capital call lives in the Venture Capital Model.

Venture Capital Model

Forecast

The Forecast sheet is the core sheet for entering expenses, creating a hiring plan, reporting revenues and billings, fundraising, and all the root calculations. Here's an explainer on how it works.

Standard Financial Model · Runway Tool

Fund Economics Tool

A single-page fund model for sizing check counts, power-law returns, and net LP/GP economics, without the quarterly cash flow detail of the full VC Model.

Fund Economics Tool

Fund Waterfalls

The difference between European, American, and SPV waterfalls.

Fund Economics Tool · Venture Capital Model (and 1 more)

Get Started

Get Started is the core input sheet for all Hemrock Models. Here's how it works.

Standard Financial Model · Runway Tool

Hiring Plan

How to use the Hiring Plan and Forecast sheets to detail new hires, employees, and a staffing plan, including salaries, benefits, taxes, bonuses, commissions, and other expenses.

Standard Financial Model

Actual Financials

How the models uses historical financials to create budget variances and rolling forecasts.

Standard Financial Model

Reviewing A Model

Key things to look for when you're reviewing your Standard Financial Model.

Standard Financial Model

Integrating Models

Detailing how to integrate any model and build custom revenue and expense forecasts into a Hemrock base model

Standard Financial Model · Runway Tool (and 5 more)

Interest Income

How the Hemrock models calculate interest income

Standard Financial Model

Inventory

How the Hemrock financial models calculate inventory expenses and balances

Standard Financial Model · Runway Tool

Entering Your Investment Strategy

How to set your investment strategy - new/follow, single or multi-stage, and ownership - in the venture capital models

Fund Economics Tool · Venture Capital Model Quarterly Forecast (and 1 more)

Iterative Calculations

How to deal with iterative calculations in Excel and Google Sheets

Key Metrics

Key Metrics is a sheet to highlight key annual management analysis metrics for the business, focused on metrics for SaaS businesses. Here's how it works.

Standard Financial Model

Key Reports

The Key Reports sheet consists of prebuilt charts for burn, runway, cash, sources and uses, and many other key metrics.

Standard Financial Model · Runway Tool

Management Company

How to budget the revenues and expenses for the management company of a fund

Fund Economics Tool · Venture Capital Model (and 1 more)

Model Checks

Model checks is a feature on the base startup models to help identify model errors or business issues. Here's how it works.

Standard Financial Model · Runway Tool

Option Pools

How to model the creation and changes in option pools in the Cap Table and Exit Waterfall Tool

Cap Table And Exit Waterfall Tool

Portfolio Construction

How to model portfolio construction in the venture fund models

Fund Economics Tool · Venture Capital Model (and 1 more)

Proceeds And Distributions

How to model proceeds, distributions, and carried interest waterfall in the venture fund models

Fund Economics Tool · Venture Capital Model (and 1 more)

Recycling

What recycling means, how it works, and common misconceptions.

Fund Economics Tool · Venture Capital Model (and 1 more)

Portfolio Reporting

Self-hosted portfolio reporting platform for venture capital funds. Deploy on your own infrastructure with your own AI keys.

Software

Portfolio Reporting Deployment

Step-by-step guide to deploy the Portfolio Reporting Stack on your own infrastructure.

Software

Residual Value

How to model unrealized gains and losses, residual value, changes in invested capital in the venture fund models

Venture Capital Model · Venture Capital Model Quarterly Forecast

Revenue Recognition

How revenue moves through the financial statements and how revenue recognition and cash collection is implemented in Hemrock models

Standard Financial Model

Revenues

The default revenue model in the Standard Financial Model is prebuilt to handle a wide variety of business models. Here's an explainer on how it works.

Standard Financial Model

Runway Tool

A cost-first forecast model for founders who need a runway number, a cash chart, and a three-statement output, without the full Standard Financial Model footprint.

Runway Tool

Scenarios

How to analyze scenarios using scenario tables and simulation add-ons.

Standard Financial Model · Runway Tool (and 6 more)

Seasonality

How to use the seaonality feature in the Hemrock financial models

Standard Financial Model · Runway Tool

Secondaries

How the Hemrock venture handles secondaries, partial liquidity, and early exit strategies

Fund Economics Tool · Venture Capital Model (and 1 more)

Send K-1s

Auto-redact SSNs, encrypt PDFs, and send K-1s securely from Gmail. All processing runs locally.

Software

Snapshot

Snapshot is a sheet to highlight key insights about the business at specific points in time. Here's how it works.

Standard Financial Model

Sources & Uses

A key part of creating a fundraising ask is understanding and communicating how the money will be raised. A sources and uses chart is a fairly standard way to communicate it, and a summary of the key expenses helps to tell the full story. Here's how I do it.

Standard Financial Model · Runway Tool

Statements

The Statements sheet in the Standard Financial Model contains the Income Statement, Balance Sheet, and Statement of Cash Flows.

Standard Financial Model · Runway Tool

Statements

The Statement sheets contains the financial statements typical for venture funds, the Statement of Operations, Statement of Financial Condition, and Statement of Cash Flows

Venture Capital Model

Summary

The Summary sheet is the first place to view to communicate the key insights about the business to the intended audience of the model.

Standard Financial Model · Runway Tool

Taxes

How Hemrock's models calculate corporate income taxes and VAT.

Standard Financial Model · Runway Tool

Unit Economics

How to use the Unit Economics sheet to model and communicate margins, breakeven, and lifetime value on a per-unit basis.

Standard Financial Model · Unit Economics Tool

Unit Economics Tool

A single-sheet calculator for LTV, CAC, and payback across recurring, one-time, and transaction revenue. Built to edit.

Unit Economics Tool

Valuation

Valuing early-stage companies can be more of an art than a science. Here I'll explain the basics behind discounted cash flow (DCF) and multiple-based valuation, and detail how they are implemented in Hemrock's models.

Standard Financial Model

Venture Capital Model

Quarterly fund forecast with multi-stage graduation, fund statements, management company P&L, and three built-in scenarios. Built for fund managers, not founders.

Venture Capital Model

Venture Capital Model, Quarterly Forecast

Simplified quarterly fund model with three scenarios. Power-law return tiers instead of multi-stage graduation. Use it when you want pacing and a J-curve without the full Strategy section.

Venture Capital Model Quarterly Forecast

Venture Studios

What are venture studios, how the economics work, and how to model venture studios

Venture Capital Model

Venture Valuation Tool

A per-investment return model for evaluating a single VC deal. Full round-chain on one sheet, single-page breakpoint evaluator on the other.

Venture Valuation Tool

Virality

How to model viral growth in your financial model.

Standard Financial Model

Warrants

How to model warrants on cap tables and exit waterfalls

Cap Table And Exit Waterfall Tool

Waterfalls

How to model exit waterfalls or liquidity distributions

Cap Table And Exit Waterfall Tool

Unconverted Convertibles

How to model unconverted convertible Notes and SAFEs in an exit waterfall

Cap Table And Exit Waterfall Tool

Fixing Blank Revenues

tl;dr, Check your acquisitions and conversions.

Standard Financial Model