Financial Model
Definition
Financial Model: A financial model is a spreadsheet-based representation of a company's financial performance and projections. Models typically include revenue, costs, cash flow, and key assumptionsāenabling scenario planning, fundraising discussions, and strategic decisions. The model is only as good as its assumptions.
Example Usage
āOur 3-year financial model shows paths to profitability under different growth and funding scenarios. Investors appreciated the rigor.ā
Common Misconceptions
Related Terms
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Burn Rate
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Unit Economics
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