You'll learn: - How to identify which numbers to track and monitor. - How to build a basic financial model. - How to articulate your financial story. One of the main reasons startups fail is they run out of capital. Learn how to master your startup's financials and stay in the game!

1. How to Master
Startup Finance

2. WHICH NUMBERS TO TRACK
HOW TO BUILD A FINANCIAL MODEL
TELL YOUR FINANCIAL STORY

3. Don’t Fear Finance
If you search startup finance you’ll find financial
models that were created for established
companies.
NOT STARTUPS

4. Sustainability
Revenue – Expense = Profit

5. Channels + Funnels
Which channels are you
using and how do they
flow through your funnel?
SOCIAL MEDIA
BLOGS
ADS
VISITS
USERS
$
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ACTIVATE
SPEND
CASH
MONEY

6. Funnel Analysis is Step Zero
KNOW HOW MONEY COMES IN
AND OUT OF YOUR COMPANY.
“Numbers will f*** up a good story
really fast.” Josh Koppelman

7. Standard Metrics
ARPU Average Revenue Per User (Customer)
CAC Customer Acquisition Cost
DAU Daily Active Users
MAU Monthly Active Users
Churn Rate The % of users/customers lost
Viral Coefficient Effectiveness of digital promos

8. Financial Statements
The Salient Six:
① Revenue
② Cost of Revenue/Goods (COGS)
③ Research and Development (R&D)
④ Sales, General, and Administrative (SG&A)
⑤ Operating Income (Loss)
⑥ Cash

9. Telling Your Story
Customer acquisition cost (CAC) is $X and avg.
revenue per user/customer (ARPU) is $X.
Our user/customer break-even is X months.
We have X trial users/customers
and X paying users/customers.
Our gross margin is X%. We spend X% on
R&D and X% on S and X% on GA. Our
EBITDA/OPERATING INC(EXP) is $X.
Our burn rate is $X, TTM revenue is $X and we
plan to break-even by X.

10. Valuations
You don’t need to create a DCF valuation
or track EBITDA multiples.
Research the market to get a range.

11. Investor Math
Equity Ownership Required: 10%-25%
Amount of Capital You Need: $2 million

12. It’s Not Personal
The most important thing is keeping your sanity.
Your numbers don’t define you.

13. Stay in Touch!
Check out our courses at: www.financeforentrepreneurs.co
- Lean Finance for Startups gives step-by-step
instructions on building a financial model.
- 3 Steps to Raising Capital Fast explains how to raise
capital on various platforms.
- Finance Boot Camp for Entrepreneurs is a 30 day
coached course. Get one-on-one mentoring.