Services · Layer 01

Foundation — Startup Financial Modeling for Pre‑Seed & Seed

The first three‑statement model, cap table, and cash flow forecast. We build the financial architecture that early‑stage companies need to operate, plan, and prepare for a fundraise.

Common Deficiencies at This Stage

  • Revenue and expenses tracked separately with no integrated three‑statement model
  • Cash position stated from bank balance rather than a calculated net burn rate
  • Chart of accounts not structured to separate cost of goods sold from operating expenses
  • Cap table records issued shares only, without convertible instruments or option pool
  • No management accounts structure producing periodic financial reporting

What the Engagement Delivers

  • Fully integrated three‑statement model with documented assumption layer and automatic cross‑statement flow
  • Chart of accounts structured to separate cost of goods sold from operating expenses, calibrated to the company's revenue recognition methodology
  • Revenue recognition schedule documenting the methodology for each revenue stream
  • Thirteen‑week rolling cash forecast connected to the financial model, updated on a weekly cycle
  • Net burn rate calculated using the correct methodology: total cash out minus total cash in, excluding financing activities
  • Cap table recording all issued equity in the correct legal class structure, with record date and transaction register
  • Management accounts structure producing reports within twenty‑five business days of each period end
  • Assumption register documenting the basis for each material financial assumption in the model

Compliance Level Delivered

Level 1
Financial Architecture and Capital Structure: three‑statement model, cash management framework, chart of accounts, revenue recognition schedule, and issued share register. This is what the Foundation layer delivers.
Level 2
Achieved progressively through Structure, Raise, and Operations layer engagements. Each layer adds a defined compliance domain at Level 2.
Level 3
Achieved through the Strategy layer engagement, covering strategic financial planning and board‑level financial governance at institutional standard.

Selected Outcome

Foundation Layer · Healthcare and HealthTech · Inception Stage

The company had tracked revenue and expenses in an invoicing system and a cost spreadsheet with no connection between the two and no cash flow visibility beyond the bank balance. The chart of accounts did not separate grant income from commercial revenue, creating a reporting problem ahead of a planned audit. We built a fully integrated three‑statement model with a revenue recognition schedule appropriate to the company's milestone‑based contract structure, a chart of accounts separating grant income and commercial revenue with the correct accounting treatment for each, and a thirteen‑week rolling cash forecast. The financial model was used without amendment in the company's first formal grant application and subsequent pre‑seed investor conversations.

We apply a structured methodology — what we internally call financial infrastructure — to ensure every component of the Foundation layer is complete and investor‑ready. For a broader overview of our approach, see our startup financial modeling guide and the what is financial modeling resource.

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