A financial model is more than a set of spreadsheets — it is the foundation upon which a startup’s strategic decisions, investor conversations, and growth forecasts are built. A dynamic financial model goes beyond static assumptions. It gives founders and decision-makers the flexibility to test different business scenarios, anticipate funding requirements, and understand how changes in key drivers — such as pricing, costs, or customer growth — impact overall performance. At its core, a well-designed model should integrate three critical elements: ✅ Accurate assumptions: Clear, data-driven inputs around revenue drivers, cost structure, and capital requirements. ✅ Interconnected statements: A cohesive structure linking profit & loss, balance sheet, and cash flow to reflect the real flow of financial activity. ✅ Scenario analysis: The ability to model best, base, and worst-case projections, ensuring preparedness for market shifts. Beyond the numbers, a strong model tells a story — one that demonstrates financial viability, strategic direction, and investor readiness. It becomes a communication tool that supports credibility and builds confidence in your business’s long-term potential. At Leonine Investment Services, we specialize in designing dynamic, flexible, and investor-ready financial models that help startups turn assumptions into actionable insights. Our approach ensures that your model evolves with your business — not against it. #FinancialModeling #StartupFinance #BusinessPlanning #InvestorReady #LeonineInvestment #FinancialStrategy

This gets confused a lot so I made a quick comparison table: Operating Models vs Fundraise Models 👇 💰 𝗙𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗲 𝗠𝗼𝗱𝗲𝗹 Typically "higher level," but has its detail too. More of an overview of a company's financial needs and potential uses of funds, attracting investors with clear info on funding rounds, valuation, and projected returns. Ideal for short to medium-term plans. Often-times I'll build a model like this, see how much the cash goes negative, and that becomes the target funding amount, plus some cushoin/buffer. 📊 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗠𝗼𝗱𝗲𝗹 Usually super detailed. A company's financial roadmap, forecasting performance with detailed projections of revenues, expenses, and capex. Mainly for internal use, assists in decision-making over medium to long-term. This is the model used during "𝗕𝘂𝗱𝗴𝗲𝘁 𝗦𝘇𝗻." 🎯 𝗦𝗰𝗲𝗻𝗮𝗿𝗶𝗼 𝗠𝗼𝗱𝗲𝗹𝗶𝗻𝗴 Fundraise Models: funding levels and exit strategies. Operating Models: growth rates, cost structures, and market conditions. 🔍 𝗭𝗼𝗼𝗺𝗶𝗻𝗴 𝗢𝘂𝘁 Fundraise Models are higher-level and investor-focused, while Operating Models are very detailed and internally focused. Seen plenty Operating Models "morph" into Fundraise Models and vice versa. I generally prefer to build an Operating Model that has fundraising functionality (because someone always asks for more detail on the operations). Also, when it comes to returns, I've found most investors prefer to calculate that figure on their own, regardless of what I've shown in the model. As such, the "Returns Section" doesn't hold as much weight as you might think. Rather, I've found investors want to gain comfort around the core Operations first. Hope this helps 🙂. ⁔‿⁔‿⁔ Hey, I'm Chris Reilly. I teach financial modeling the way I wish someone had taught me -- so professionals can build accurate, confident models without losing their nights, weekends, or sanity 👉 https://bit.ly/FMECourses

Every finance textbook tells you to build three models: best case, base case, worst case. In startup reality, that framework often collapses before the first quarter ends. I used to spend hours building multiple forecasts and running endless "what if" analyses. It looked structured. It felt smart. But here’s what actually happened: the founders stopped trusting the model the moment the first assumption broke. In early-stage finance, precision is overrated. Adaptability is everything. Here’s what works better: • One plan built on today’s truth, not tomorrow’s guess • Quarterly reviews that reflect where you are, not where you hoped to be • Ruthless adjustments because survival is a moving target Scenario planning looks great in a board deck. But discipline in execution comes from a single, evolving plan that everyone trusts. When investors ask, “Where do you see this going?” A credible founder says,  “Here’s our direction, and here’s how fast we will change it if the market demands.” #founderfinance #startupstrategy #financialplanning #cfoinsights #agilefinance

From Pre-Seed to Series A: Your Financial Focus Must Evolve Each funding round brings more than capital — it raises the expectations around how you manage, interpret, and present your numbers. Yet many founders try to raise their next round while still operating with the mindset (and financial discipline) of their previous one. Here's how your financial focus should mature as your startup progresses: Pre-Seed Primary Focus: Validate the idea Explore founder–market fit Build a light, directional financial model to size the opportunity Basic cash tracking and clarity on monthly burn At this stage, investors are backing you and the vision. Precision isn't expected — but clarity of thought is. Seed Primary Focus: Establish your go-to-market (GTM) strategy Build a lean but credible financial model Start tracking early metrics (revenue, CAC, churn, etc.) Prepare for light investor scrutiny around capital allocation Here, you're expected to show traction, test repeatability, and begin proving that your economics can scale. Series A Primary Focus: Forecasting across multiple scenarios Deep CAC/LTV modeling Full financial statements (P&L, balance sheet, cash flow) Understanding of gross margin drivers Operational dashboards and cohort analysis This is when financial rigour becomes a non-negotiable. Investors expect that you've built not just a product but a business model. The takeaway? Your financial systems, reporting, and thinking must evolve in lockstep with your fundraising journey. If they don't, you'll find yourself out of sync with investor expectations — even if your product is strong. Follow: #ScaleUPCFO Contact: Mohamed Chaudry #StartupStrategy #SeriesAFinance #StartupGrowth #ScalingSmart #FinancialDiscipline #InvestorReadiness #EarlyStageFounders #CFOInsights

We just published the next post in our Bling Capital Navigating Diligence Series: “The D+ Financial Model”. Free template in the comments! 👉 https://lnkd.in/emGDHbCp Excited to share this one and shoutout to my partner Charlie Pinto for leading this. When I was a founder, I created a sophisticated financial model but now as an investor, I realize the key to a great financial model is simplicity and focus on just a few key levers. A D+ model (what we call the quick-and-dirty, 30–60 minute version) helps founders answer the most important question in diligence (and in operating): “How much money do you need, over what period, to achieve which goals?” 🧮 It’s designed for pre-seed and seed founders (the framework works for later stage too) — no finance lead required, cash-based (not GAAP), and simple enough to build yourself (esp. with our template—linked in comments) 💡 Key takeaways: * Focus on costs first, founders control spend more than revenue at this stage * Gross profit reduces burn, not just top-line revenue * Start lean and “earn the right to burn” once you’ve proven product-market fit * Check your sanity: growth, hiring pace, and runway must tie together * Use our simple mad-libs template for modeling The goal isn’t an A+ spreadsheet — it’s a D+ model that clearly communicates your assumptions, capital plan, and milestones. Read the full post and grab the template here 👇 https://lnkd.in/emGDHbCp

I hear this constantly: "We haven't built the financial model yet. We'll figure it out once we start raising." Let me tell you what investors hear: "I haven't thought deeply about my business." I get it. You're busy. You're building the product, talking to customers, managing the team. Financial modeling feels like homework that can wait. Your financial model isn't separate from your business. It IS your business, just translated into numbers. When you say "we'll figure it out later," you're essentially saying you're building something without understanding the economics of how it works. That's not scrappy or agile. That's just risky. Even if your numbers change every month (they will), having a plan shows you think strategically. It shows you can connect actions to outcomes. It shows you're ready to deploy capital effectively. Investors aren't asking for perfection. They're asking for thoughtfulness. What's one financial question about your business you've been putting off figuring out? #FinancialPlanning #FounderMindset #Fundraising #StartupStrategy #InvestorRelations ----------------------------------------------------------- Hi, I’m Sheneela, 👋🏼 I partner with tech founders to craft precise financial strategies that win investor confidence and support strategic growth. If you’re preparing for a capital raise or major growth milestone, let's talk. https://lnkd.in/d7Hw-xaw 

I hear this constantly: "We haven't built the financial model yet. We'll figure it out once we start raising." Let me tell you what investors hear: "I haven't thought deeply about my business." I get it. You're busy. You're building the product, talking to customers, managing the team. Financial modeling feels like homework that can wait. Your financial model isn't separate from your business. It IS your business, just translated into numbers. When you say "we'll figure it out later," you're essentially saying you're building something without understanding the economics of how it works. That's not scrappy or agile. That's just risky. Even if your numbers change every month (they will), having a plan shows you think strategically. It shows you can connect actions to outcomes. It shows you're ready to deploy capital effectively. Investors aren't asking for perfection. They're asking for thoughtfulness. What's one financial question about your business you've been putting off figuring out? #FinancialPlanning #FounderMindset #Fundraising #StartupStrategy #InvestorRelations ----------------------------------------------------------- Hi, I’m Sheneela, 👋🏼 I partner with tech founders to craft precise financial strategies that win investor confidence and support strategic growth. If you’re preparing for a capital raise or major growth milestone, let's talk. https://lnkd.in/d7Hw-xaw 

Your financial model has a tab that most founders ignore. Or worse, they build the whole model without it. It's the assumptions sheet. And it's the most important tab in your entire model. Here's why: Every projection you make is based on assumptions. Growth rates, pricing, churn, CAC, conversion rate; these are all assumptions. And when an investor challenges your numbers (not if, when), you need to be able to defend the logic behind them. "You're projecting 67% YoY growth. Why?" Bad answer: "Because we're really good and the market is huge." Good answer: "Based on three things: We're adding two sales reps per quarter, our current close rate is 25%, and each rep can handle 40 qualified leads per month. Here's the math." The assumptions sheet is your backup. It's your receipts. It's what turns your model from wishful thinking into a defendable plan. Document everything. Your future self (and your investors) will thank you. Could you defend every number in your financial model right now? If not, let's talk. #FinancialAssumptions #ModelingBestPractices #Fundraising #InvestorReady #StartupFinance ----------------------------------------------------------- Hi, I’m Sheneela, 👋🏼 I partner with tech founders to craft precise financial strategies that win investor confidence and support strategic growth. If you’re preparing for a capital raise or major growth milestone, let's talk. https://lnkd.in/d7Hw-xaw