Customize

Edit and extend your model — revenues, costs, cap tables, fund models

Recommended Software

Microsoft Excel or Google Sheets work well with Hemrock models.

Performance Metrics

Key metrics for performance reporting for venture capital funds.

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.

Saas

An overview of how to use the Standard Financial Model to model consumer, SMB, and enterprise SaaS.

Ecommerce

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

Marketplaces

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

Circular References

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

Spvs

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

Hardware

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

Services

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

Accruals And Payables

How the Hemrock models calculates accruals and payables

Amortization

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

Anti-dilution

How to model anti-dilution for equity shareholders in the 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.

Budget

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

Capital Expenditures

How the Hemrock financial models calculate capital expenditures and depreciation

Capital Budgeting

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

Capital Deployment

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

Charges On Your Credit Card Statement

Why HEMROCK.COM/CHARGES (or FORESIGHT.IS/CHARGES) shows up on your statement, and what to do if you don't recognize it.

Cohorts

How to use cohorts in building financial models

Colophon

How this site is built, hosted, and run.

Model Formatting

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

Safes And Convertible Notes

How to model convertible notes, premoney SAFEs, and postmoney SAFEs in the 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

Deferred Revenue

How the Hemrock financial models forecast deferred revenue

Forecasting Drivers

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

Equity

How to model new equity rounds in the 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.

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.

Fund Waterfalls

The difference between European, American, and SPV waterfalls.

Get Started

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

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.

Actual Financials

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

Reviewing A Model

Key things to look for when you're reviewing your model.

Integrating Models

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

Interest Income

How the Hemrock models calculate interest income

Inventory

How the Hemrock financial models calculate inventory expenses and balances

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.

Key Reports

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

Management Company

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

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.

Option Pools

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

Portfolio Construction

How to model portfolio construction in the venture fund models

Proceeds And Distributions

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

Recycling

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

Portfolio Reporting

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

Portfolio Reporting Deployment

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

Residual Value

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

Revenue Recognition

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

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.

Scenarios

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

Seasonality

How to use the seaonality feature in the Hemrock financial models

Secondaries

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

Send K-1s

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

Snapshot

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

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.

Statements

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

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

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.

Taxes

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

Portfolio Tracking

How to track a portfolio of investments

Unit Economics

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

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.

Venture Studios

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

Virality

How to model viral growth in your financial model.

Warrants

How to model warrants on cap tables and exit waterfalls

Waterfalls

How to model exit waterfalls or liquidity distributions

Unconverted Convertibles

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

Fixing Blank Revenues

tl;dr, Check your acquisitions and conversions.