This model maps out the general fundraising rounds that a company might encounter. You can add more columns in between these rounds to bring on co-founders, employees, advisors, consultants, partners, or anyone else you plan to share equity with.

Each bank of columns is defined by the comany valuation at the time that equity is given.

In general, you start with the end in mind, which is an acquisition or IPO, and work backwards to set your valuations and when you plan to raise money. No doubt this will change and probably drastically so as you move along, but they helps you think it through ahead of time.

Rules Of Thumb for Consumer Product Companies:

Acquisition can be anywhere from 1-4 times revenue. Plan for 1.5 times to be conservative, but realistic

You need to plan for your venture capitalists to get at least 10x their return on investment, so adjust valuations based on that. Valuations are highly dependent on what the market will currently bear. In bull markets or non-recessions, valuations can be on the high side - 2.5+ times revenue, but in down economies or categories that are not growing, valuations will be 1 times revenue or less.

In the accelerator funding round, assume $200,000 to $500,000 valuation. Look to give up 6% to 15%

The numbers populated in the model are an example. Cells in yellow are variables, all other are equations. Study the equations and the relationships in the model so you understand what is going on.

Board seats are an example, and not necessarily representative of what can actually occurr

Be sure to read ay notes in cells (highlight cell with your mouse for notes to expand out...see cell below as example)