How to complete the Financial Resources tab

The “Financial Resources” tab in Business Model Forecast is where you complete information about fundings.

Example on how to fill in the financial resources tab of Business Model Forecast

Example on how to fill in the financial resources tab of Business Model Forecast

There are only 3 kind of funding information to complete in this tab :

  • Capital : Fill-in here capital evolution over time. Capital funding is the long-term cash that will finance main investments. Capital comes mostly from from founders, love money, crowdfunding, business angels and venture capitalists. The capital in startup is remunerated will the perspective to make a profit when selling equity stocks (in the long term, dividends can also remunerate stocks). The capital takes the highest risk because startups are really risky investments for financiers with uncertain results and profitability. To convince capital investors, entrepreneurs will have to persuade these investors that their startup projects have high potential and worth the risk. For more information, read this article on “How do investors value startup equity ?”.
  • Debt : Fill-in here new debts you expect to take out over time. Debt will usually fund investments in tangible assests like machines, real estate, stocks … Debt comes mostly from institutional bankers or crowdlending. Debts are remunerated with interests and usually implies a short-term reimbursement. That’s why debt is not really adapted for young startups that are in deficit. To obtain debts from bankers, startups should have enough capital funding (bankers will usually accept to lend a startup from 1 to 2 time the capital as an upper limit) and should be usually profitable (bankers will accept to lend a startup an amount limited by its capacity to reimburse debts with profits generated).
  • Subsidies : Fill-in here subsidies you expect to receive. Subsidies / Grants funds come mostly from public administrations. They are usually offered to startups to help them start and thrive. In Business Model Forecast you should only consider to fill this “Subsidies” line with non-refundable fundings (otherwise, you should put refundable “subsidies” in the debt line as any other loan).

Notice that you don’t have to specify any reimbursement period information for debts, as it’s automatically calculated by Business Model Forecast with a default 5 years period of reimbursement. This is a choice we made when designing this financial tool, to keep it simple and still relevant (5 years is a quite common duration for reimbursement).

It’s seems pretty simple to complete this tab. In fact, it’s not so easy. Building a good funding plan rely on a good understanding on how financials work. Capital investors, bankers and public actors have different expectations and ways of evaluating startup project. When it comes to funds raising, you should really consider to get help from experienced mentors or advisors to build a funding plan fitting at best your project and financier’s expectations.

Next step -> How to analyse the Dashboard tab


Let’s have a look to the picture example above to better understand how to complete this financial resources tab.

In the “Capital” line, you can see that there is a first amount of 100k$, which is the capital from founders. Then you have 2 other amounts of 1M$ and 3M$ in the 2nd and 4th years, corresponding to 2 next fundraisings expected from private equity funds to finance the growth of the startup.

In the “Debt” line, there are 2 different amounts of 300k$ and 500k$ in the 2nd and 3rd years. In this example, we expect to convince bankers to finance a part of our funding plan, after the first capital fundraising from venture capitalists. Bankers are usually less reluctant to finance a small amount of a startup funding plan after a significant fundraising (still, it really depends on the business).

In the “Subsidy” line, there are 2 different amounts of 100k$ and 200k$ in the 1st and 3rd years. Usually, public subsidies help startups to launch their businesses, so these kind of fundings are available mostly during the first years of startup life.

Off course all these numbers are imaginary. This is a basic example to help you understand how this tab works.

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