FINANCIAL MODEL FOR

TRANSACTION BASED REVENUE BUSINESSES

ASSUMPTIONS IN THIS MODEL D

The finances in this template make the following assumptions. If you wish
to make adjustments, check with your teacher and/or mentor to make sure 1
Your
you'reteam's revenue
not missing is coming from a variety of types, such as transaction
a nuance. 2
and
Youradvertising
team ableand
team'siscosts cansubscription.
to be calculated
generally forhow
forecast eachmany
of thesales
appropriate revenue you
and impressions 3
types.
will do for each month for a year.
You
- Weknow
knowhowthis much you are charging
is an estimate in Unit 4 a- customer per
your goal is tounit or out
figure getting pera
what's
impression
realistic number by Unit 8.
- Again, an estimate. If a cell is pink, this means things it in c
like this.
If a cell is yellow, DO NOT CHANGE (the
WHAT TO USE AND WHEN worksheets, aka tabs)
The model is designed to support you throughout the growth of your first
year. Use this schedule to help you focus on only the tabs you need during
Only
As
certain complete
your company
units. thelearns
following
fromtabs
the during
MVP 4Unit 4
UNITexperimentation, you will be able to
- COGSforecast out revenue, categorize costs, and what your company's
better
- Revenuewill
finances (which includes
look like. Make Gross Margins)
sureUNITS
you work
-Now Startup Costs (estimates) 6 - 7through the following tabs in
units 6 and
that 7: have
you a better understanding of your business's financial
- Reviseand
model COGswhere cash is coming and going,
-howRevise UNIT 8 you can start to forecast out
youRevenues
plan to grow and what you need financially to support that
-growth.
Revise Startup
For this Costs
unit, focus on the following tabs:
Add SG&A
- Growth Rate
- Valuation
ANCIAL MODEL FOR
BASED REVENUE BUSINESSES

Make a copy of this template and DIRECTIONS

add your team information in the TeamInfo tab.
For version control: after Unit 4, every time you make changes to your numbers,
copy
As you the currentto
continue version
update tothe
keep as an archive.
finances, So, by
make sure youthe end ofthe
update the"Last
course, you
Updated"
If
canusing
cell see Microsoft Excel,
theTeamInfo
in the changes macros
you've
tab. made must be enabled
throughout yourforexperiment.
the Valuation sheet to work
properly. When you see the message asking if you want to enable Macros, select
"Enable Macros"; if you select Disable Macros you will need to re-open the model.
LEGEND
If a cell is pink, this means things it in can be changed. You'll be working mostly in cells
like this.
If a cell is yellow, DO NOT CHANGE (these have formulas or are linked from other
worksheets, aka tabs)
Company Name: Ecoviv

Team Member Names: Saniyya, Ava, Hannah, Anastasia

Period: 3B

Last Updated: 1/29/19

Description of Your Wearable recycled material jewelry that promotes awareness

Business Idea: of pollution

Notes/Updates/Questions:
Use this space to make notes, jot down questions, to dos, etc.
 \
DIRECTIONS
Input your revenue assumptions into the Transaction-Based Revenue section below. If you offer advertising revenue, input those revenue assumptions as well. Within each revenue mod
use the lines for the other transaction types. Specific instructions for each revenue model are provided.

Transaction-Based Revenue:
1. Input the Unit Price for each type of transaction revenue you will offer.
2. Input the number of units that will be sold in each month of Year 1 for each transaction type.
3. Input the Annual Growth Rate in Units Sold for Year 2 and Year 3 for each transaction type.
Year 1 Monthly Units Sold
Transaction Type Unit Price septemb october novemb decemb january february march
may june july august april
er er er
Bracelet $ 15.00 10 15 20 25 30 35 40 45 50 55 60 65
[Transaction Revenue 2] $ - 0 0 0 0 0 0 0 0 0 0 0 0
[Transaction Revenue 3] $ - 0 0 0 0 0 0 0 0 0 0 0 0
[Transaction Revenue 4] $ - 0 0 0 0 0 0 0 0 0 0 0 0
Total of all Transaction Types 10 15 20 25 30 35 40 45 50 55 60 65

Advertising-Based Revenue:
1. Input the Revenue per Thousand Impressions (or some other advertising-related metric, be sure to adjust your decimals accordingly) for each type of advertising revenue you will offe
2. Input the number of impressions for each month of Year 1 for each type of advertising revenue.
3. Input the Annual Growth Rate in impressions (or some other advertising-related metric) for Year 2 and Year 3 for each type of advertising revenue.
Revenue Year 1 Monthly Impressions (in thousands)
Advertising Type (per 1K Month Month Month
Impress.) Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 10 11 12
[Advertising Revenue 1] $ - 0 0 0 0 0 0 0 0 0 0 0 0
[Advertising Revenue 2] $ - 0 0 0 0 0 0 0 0 0 0 0 0
[Advertising Revenue 3] $ - 0 0 0 0 0 0 0 0 0 0 0 0
[Advertising Revenue 4] $ - 0 0 0 0 0 0 0 0 0 0 0 0
Total of all Advertising Types 0 0 0 0 0 0 0 0 0 0 0 0
 \
assumptions as well. Within each revenue model, only use the lines for the type you will offer. For example, in Transaction, if you offer one product/service, do not

Year 1 Year 2 Year 3

Total Units Total Growth Units Growth Units
Revenue Revenue
Sold Revenue Rate Sold Rate Sold
450 $ 6,750.00 5.0% 473 $ 7,087.50 10.0% 520 $ 7,796.25
0 $ - 0.0% 0 $ - 0.0% 0 $ -
0 $ - 0.0% 0 $ - 0.0% 0 $ -
0 $ - 0.0% 0 $ - 0.0% 0 $ -
450 $ 6,750.00 473 $ 7,087.50 520 $ 7,796.25

each type of advertising revenue you will offer.

ng revenue.
Year 1 Year 2 Year 3
Total Total Growth Growth
Impress. Revenue Impress. Revenue
Impress. Revenue Rate Rate
0 $ - 0.0% 0 $ - 0.0% 0 $ -
0 $ - 0.0% 0 $ - 0.0% 0 $ -
0 $ - 0.0% 0 $ - 0.0% 0 $ -
0 $ - 0.0% 0 $ - 0.0% 0 $ -
0 $ - 0 $ - 0 $ -
Input the costs (materials, packaging, labor, etc) to produce one unit of your product or deliverCost ofofGoods
one unit Sold
your service for each type of transaction revenue you will offer.
(aka COGS)
Notes:
DIRECTIONS
For businesses using an Advertising-based revenue model or selling an app, this worksheet is not needed as most costs associated with digital marketing are fixed.
You may not need all the rows below, but if you need additional rows, insert a row above the last expense line in each category and check the equations in total cells.

Transaction-Based Revenue Costs of Goods Sold

1. Complete the appropriate costs per unit section below for each type of transaction revenue you will offer.

Bracelet Costs per Unit [Transaction Revenue 2] Costs per Unit

Types of Costs Description Unit Cost Types of Costs Description Unit Cost
Plastic dye Rit Dyemore A special dye that colors plastic $ 0.01 [Type 1] [detailed description of type 1] $ -
Labor labor cost for making beads $ 2.42 [Type 2] [detailed description of type 2] $ -
thread waxed cotton $ 0.04 ht[Type 3] [detailed description of type 3] $ -
packaging plantable seed cards $ 0.58 [Type 4] [detailed description of type 4] $ -
Sticker compostable adhesive $ 0.03 [Type 5] [detailed description of type 5] $ -
[Type 6] [detailed description of type 6] $ - [Type 6] [detailed description of type 6] $ -
[Type 7] [detailed description of type 7] $ - [Type 7] [detailed description of type 7] $ -
Total COGS per Unit $ 3.08 Total COGS per Unit $ -
Unit Price $ 15.00 Unit Price $ -
Less: COGS per Unit $ 3.08 Less: COGS per Unit $ -
Equals Gross Margin per Unit $ 11.92 Equals Gross Margin per Unit $ -
Gross Margin % (Gross Margin/Price) 79.48% Gross Margin % (Gross Margin/Price) #DIV/0!

[Transaction Revenue 3] Costs per Unit [Transaction Revenue 4] Costs per Unit
Types of Costs Description Unit Cost Types of Costs Description Unit Cost
[Type 1] [detailed description of type 1] $ - [Type 1] [detailed description of type 1] $ -
[Type 2] [detailed description of type 2] $ - [Type 2] [detailed description of type 2] $ -
[Type 3] [detailed description of type 3] $ - [Type 3] [detailed description of type 3] $ -
[Type 4] [detailed description of type 4] $ - [Type 4] [detailed description of type 4] $ -
[Type 5] [detailed description of type 5] $ - [Type 5] [detailed description of type 5] $ -
[Type 6] [detailed description of type 6] $ - [Type 6] [detailed description of type 6] $ -
[Type 7] [detailed description of type 7] $ - [Type 7] [detailed description of type 7] $ -
Total COGS per Unit $ - Total COGS per Unit $ -
Unit Price $ - Unit Price $ -
Less: COGS per Unit $ - Less: COGS per Unit $ -
Equals Gross Margin per Unit $ - Equals Gross Margin per Unit $ -
Gross Margin % (Gross Margin/Price) #DIV/0! Gross Margin % (Gross Margin/Price) #DIV/0!

https://www.honeybegood.com/collections/eco-friendly-sewing-thread
Transaction-Based Revenue COGS:
Year 1 Year 2 Year 3
Transaction Type COGS per Unit Total Units Total
Units Sold Total COGS Units Sold
COGS Sold COGS
Bracelet $ 3.08 450 $ 1,385.21 473 ### 520 ###
[Transaction Revenue 2] $ - 0 $ - 0 $ - 0 $ -
[Transaction Revenue 3] $ - 0 $ - 0 $ - 0 $ -
[Transaction Revenue 4] $ - 0 $ - 0 $ - 0 $ -
Total Transaction-Based COGS $ 1,385.21 ### ###

Subscription-Based Revenue COGS:

Year 1 Year 2 Year 3
Transaction Type COGS per Unit Total Units Total
Units Served Total COGS Units Served
COGS Served COGS
Total Transaction-Based COGS $ - 0 $ - 0 $ - 0 $ -
 Startup Costs
DIRECTIONS
1. Take your list of startup costs and determine which of the categories below each fits into. Input each item into the appropriate category.
a. Administrative Costs - Filing fees (LLC agreements, articles of incorporation), permits, patents, legal costs
b. Plant, Property and Equipment - land, buildings, equipment (including computers), machinery, molds
c. Development Costs - Costs associated with an investment in an initial prototype (i.e. material and labor)
d. Marketing Costs - Marketing expenses required prior to revenue generation, samples, such as trade shows, initial vendor relationships, etc.
e. Salaries or Consulting Fees - Includes salaries paid to third parties or members of the team, as well as consulting fees to third party contractors
f. Start-Up Inventory - An estimate of the amount of inventory that the business will require when it commences operations
2. Input your estimated amount for each item.
Notes:
You may not need all of the rows below, but if you need additional rows, insert a row above the last expense line in each category.

Administrative Costs

LLC $ 100.00
[Administrative Cost 3] $
[Administrative Cost 4] $
[Administrative Cost 5] $ -
[Administrative Cost 6] $ -
[Administrative Cost 7] $ -
[Administrative Cost 8] $ -
[Administrative Cost 9] $ -
[Administrative Cost 10] $ -
Subtotal: $ 100.00

Plant, Property and Equipment

[Plant, Property, & Equip. Cost 1] $
[Plant, Property, & Equip. Cost 2] $ -
[Plant, Property, & Equip. Cost 3] $ -
Subtotal: $ -

Development Costs (i.e. Prototype) If your business is a digitally product, your version 1.0 will be captured here. All bug fixes a
SEEKONE Heat Gun 1800W Heavy Duty Hot Air Gun Kit $ 77.79
Rit dye more $ 66.24
[Development Costs 3] $ -
Subtotal: $ 144.03

Marketing Costs

instagram ads $ -
[Marketing Costs 3] $ -
[Marketing Costs 4] $ -
[Marketing Costs 5] $ -
Subtotal: $ -

Salaries or Consulting Fees

[Salaries or Consulting Fees 1] $ -
[Salaries or Consulting Fees 2] $ -
[Salaries or Consulting Fees 3] $ -
Subtotal: $ -

Inventory

Total Startup Costs $ 244.03

If your business is a digitally product, your version 1.0 will be captured here. All bug fixes and future versions will be captured in SG&A.
DIRECTIONS
1. List out your SG&A costs.
2. Categorize each SG&A cost using the categories below. Some guiding examples:
a. Administrative Costs - legal expenses, accounting fees, technology fees, rent, insurance, and other
b. Bug Fixes & Market Relevance - maintaining your product based on trends and what customers need
c. Marketing Costs - promotional materials, marketing research, website maintenance expenses, ads, and other
d. Salaries or Consulting Fees - salaries for your team, salaries for your development team (if necessary), consulting fees paid to advisors
e. Selling Costs* - commissions for sales team, travel expenses, merchant fees
3.
4. Input yourthe
Override estimated
amountsamount for2-5,
for Years eachas item for the
needed. firstexpenses
Some year. Allwill
costs are onwith:
change a yearly basis; sales,
increased if yourexpanded
estimate marketing
is per month, simply
plans, multiply
or overall by 12.
growth.
Input these changing costs appropriately as you move from years 2 through 5.
Notes:
You maycosts
*Selling not need all of
include anthe rowstobelow;
ability enter
calculate zeros for unnecessary
commissions expenses.
payable to sales peopleIf you
basedneed
on additional rows, insert
projected revenue. For aTransaction
row above and
the last expenseRevenue,
Advertising line in
each
Sellingcategory.
cost is calculated with annual revenue. If the revenue model includes a sales commission component, put the applicable commission percentage
in cell C46. Otherwise, set the commission percentage in cell C46 to 0%.

Year 1 Year 2 Year 3

Administrative Costs
[Administrative Costs 1] $ - $ - $ -
[Administrative Costs 2] $ - $ - $ -
[Administrative Costs 3] $ - $ - $ -
[Administrative Costs 4] $ - $ - $ -
[Administrative Costs 5] $ - $ - $ -
[Administrative Costs 6] $ - $ - $ -
[Administrative Costs 7] $ - $ - $ -
[Administrative Costs 8] $ - $ - $ -
[Administrative Costs 9] $ - $ - $ -
[Administrative Costs 10] $ - $ - $ -
Total Administrative Costs $ - $ - $ -
Bug Fixes & Market Relevance (for digital-based products and transaction based-revenue)
Bug Fixes $ - $ - $ -
Market Relevance $ - $ - $ -
Total Bug Fixes & Market Relevance Costs $ - $ - $ -
Marketing Costs
$ - $ -
Facebook ads $ 37.20 $ 37.20 $ 37.20
Instagram ads $ 30.00 $ 30.00 $ 30.00
[Marketing Costs 4] $ - $ - $ -
[Marketing Costs 5] $ - $ - $ -
Total Marketing Costs $ 67.20 $ 67.20 $ 67.20
Salaries or Consulting Fees
[Salaries or Consulting Fees 1] $ - $ - $ -
[Salaries or Consulting Fees 2] $ - $ - $ -
[Salaries or Consulting Fees 3] $ - $ - $ -
Total Salaries or Consulting Fees $ - $ - $ -
Selling Costs
[Selling Costs 1 (or % of Revenue)] 0.0% $ - $ - $ -
[Selling Costs 2] $ - $ - $ -
[Selling Costs 3] $ - $ - $ -
[Selling Costs 4] $ - $ - $ -
Total Selling Costs $ - $ - $ -
Total SG&A $ 67.20 $ 67.20 $ 67.20
 Market Sizing
Input your Market Sizing data into the appropriate category(ies) below. The inputs can be found in your Market Size Model from
DIRECTIONS
the Market Sizing lesson. Open this file to locate this information. As you enter the information, double-check your work and
make
Followsure
the itappropriate
continues to accuratelybelow
instructions represent your market.
depending on how you choose to estimate your total buyers. Input sources/notes for
Total Addressable Market:
each assumption. Note: Yellow shaded cells should not be edited. Pinkish shaded cells are for inputs. Empty input figure cells
should have a value of 1.
2. Build-up to your estimated total buyers by entering additional
Top-Down Approach: Bottom-Up
assumptions. Approach:
Thisyou
model assumesyou youare
areadding
multiplying your to
Note: If, instead, are adding assumptions
1. Input your first data point in Starting Figure. 1. Input
assumptions
estimate your first
yourby data
your
total pointchange
Starting
buyers, inFigure
Starting
(for*Figure.
the example, # daycares
in the formula in U.S.
for Estimated
2. Wittle down your Starting Figure by entering your xTotal
# students in each
# of Buyers daycare
to +. x ...). Assumption cells should then have
Also, empty
Assumptions (in percentages), i.e. when starting with the a value of 0.
entire population of the U.S. enter "0.5" to get females
in the U.S.
Serviceable Addressable Market:
Follow the steps below to estimate your Serviceable Addressable Market. Note: Yellow shaded cells should not be edited.
Pinkish
1.
2. "Totalshaded
Use the cellsautomatically
# Assumption
Buyers" arelines
for inputs. Empty
pulls
to whittle yourinput
down this figure
TAM cells
from the
number should
toprevious
the have
sheet.
realistic a You
value
segment ofofoverride
can 1.the TAM this
you with
willamarket
sourcedyour
number for your
SAM. Either method
product/service is anyour
to. Input option. Depends on
Assumptions aswhat data canand
percentages be enter
found.sources/notes for each assumption.
Note: If you enter a sourced number for your SAM, you will not use the Assumption lines and can skip to Step 3.

Transaction-Based Revenue
TAM: Total Addressable Market
# of females from 10-19 in the United States 20,447,000
[Assumption 1] 1.00
[Assumption 2] 1.00
[Assumption 3] 1.00
[Assumption 4] 1.00
Estimated TOTAL # of Buyers 20,447,000
Frequency of Purchase 2
TAM (# of Units) 40,894,000
Average Unit Price $ 15.00
TAM ($ Revenue) $ 613,410,000.00
SAM: Serviceable Addressable Market
Total # Buyers 489,868
[Assumption 1] 1.00
[Assumption 2] 1.00
[Assumption 3] 1.00
[Assumption 4] 1.00
Estimated TOTAL # of Customers 489,868
SAM (# of Units) 979,736
SAM ($ Revenue) $ 14,696,040
MS: Market Share
Our Year 1 Revenue (from 3 Year Summary) $ 6,750
Market Share Percent 0.05%

Advertising-Based Revenue
TAM: Total Addressable Market
[Starting Figure] 1
[Assumption 1] 1.00
[Assumption 2] 1.00
[Assumption 3] 1.00
[Assumption 4] 1.00
Estimated TOTAL # of Buyers 1
Frequency of Purchase 1
TAM (# of Units) 1
Average Unit Price $ -
Factor in Revenue as per thousand impressions 0.001
TAM ($ Revenue) $ -
SAM: Serviceable Addressable Market
Total # Buyers 1
[Assumption 1] 1.00
[Assumption 2] 1.00
[Assumption 3] 1.00
[Assumption 4] 1.00
Estimated TOTAL # of Customers 1
SAM (# of Units) 1
SAM ($ Revenue) $ -
MS: Market Share
Our Year 1 Revenue (from 3 Year Summary) $ -
Market Share Percent #DIV/0!
 3 Year Summary
Notes:
1. Cell B32 calculates how much cash you will need to invest upfront to avoid running out of cash in the future.
2. Cell B32 cannot be negative. If it is negative, enter the absolute value of Cell B32 into Cell C26 (follow the arrow).
3. Cell B22 represents your assumed tax rate for calculating your tax provision; it is the only other cell in this model that you should manually input.

Year 1 Year 2 Year 3

INCOME STATEMENT
Revenue:
Transaction-Based Revenue $ 6,750.00 $ 7,087.50 $ 7,796.25
Advertising-Based Revenue $ - $ - $ -
Total Revenue $ 6,750.00 $ 7,087.50 $ 7,796.25
Cost of Goods Sold:
Transaction-Based COGS $ 1,385.21 $ 1,454.47 $ 1,599.92
Cost of Goods Sold $ 1,385.21 $ 1,454.47 $ 1,599.92
Gross Profit $ 5,364.79 $ 5,633.03 $ 6,196.33
Gross Profit Margin 79.5% 79.5% 79.5%
SG&A $ 67.20 $ 67.20 $ 67.20
Operating Profit $ 5,297.59 $ 5,565.83 $ 6,129.13
Tax provision 20.0% $ 1,059.52 $ 1,113.17 $ 1,225.83
Net Income / Net Loss $ 4,238.07 $ 4,452.66 $ 4,903.30

CASH FLOW STATEMENT

Beginning Cash $ - $ 4,238.07 $ 8,690.73
Cash from Operations:
Add/Subtract: Net Income/Net Loss $ 4,238.07 $ 4,452.66 $ 4,903.30
Cash from Financing:
Add/Subtract: Equity Investments Made/Repaid $ - $ - $ -
Ending Cash period $ 4,238.07 $ 8,690.73 $ 13,594.04
Cash Shortfall $ - Input the cash shortfall value (if any) into Beginning Cash cell above (cell
C26). This cell feeds into the Max. Cumulative Loss in Sources and Uses of
Capital table on the Valuation tab.
 Valuation
DIRECTIONS
Valuation requires you to work through the sections below. Each section has specific directions. Use what you've learned from the presenta

Section 1: Sources and Uses of Capital

DIRECTIONS
1 Start-Up Costs are calculated.
2 Maximum Cumulative Loss is calculated.
3 Liquidity Cushion should be input based on an estimate of the liquidity needs of the business.
4 Debt should be input based on how much debt is obtained to fund the business.
5 Founder Equity should be input based on how much Founder Equity is obtained to fund the business.
6 Investor Cash Equity is calculated.

Uses Sources
Start-Up Costs 244 Debt
Maximum Cumulative Loss - Founder Cash Equity
Liquidity Cushion - Investor Cash Equity
Total Uses of Capital $244 Total Sources of Capital

Section 2: Valuation Model

DIRECTIONS
1 Determine if the Exit Multiple Type is Revenue or Net Income using the Exit Multiple Type drop-down box.
2 If the Exit Multiple Type is Revenue, choose the Revenue Multiple using the drop-down menu.
3 If the Exit Multiple Type is Net Income, choose the Net Income Multiple using the drop-down menu.
4 Determine the Discount Rate using the drop-down menu.
5 Determine the Exit Year using the drop-down menu (the year in which the business is sold).

Exit Multiple Type Revenue

Revenue Exit Multiple 1.00x 1.0x
Discount Rate 20.0% 12/31/2013 12/31/2014
Exit Year Year 3

Today Year 1
Revenue $ - $ 6,750.0
Net Income (Cash Flow to Equity) - 4,238.1
Terminal Cash Flow (1.0x Revenue Multiple) - -
Total Cash Flow to Equity - 4,238.1

Year 1 Present Value @ 20.0% Discount Rate $ 3,531.7

Year 2 Present Value @ 20.0% Discount Rate 3,092.1
Year 3 Present Value @ 20.0% Discount Rate 7,349.3
Pre-Money Valuation $ 13,973.1

Section 3: Pre-Money Valuation Matrix

DIRECTIONS
 0 None. There's no need to do anything here. This is all calulated from the inputs in the sections above.

Revenue Exit Multiple

0.5x 0.8x 1.0x
15.0% 12,839.2 14,120.8 15,402.3
17.5% 12,257.5 13,458.9 14,660.4
Discount Rate 20.0% 11,717.3 12,845.2 13,973.1
22.5% 11,214.8 12,275.0 13,335.3
25.0% 10,746.5 11,744.4 12,742.3

Section 4: Equity Ownership Sizing

DIRECTIONS
0 None. There's no need to do anything here. This is all calulated from the inputs in the sections above.

Pre-Money Valuation $ 13,973.1

Plus: New Investment 244.0
Post-Money Valuation $14,217.2

Pre-Money Valuation Ownership Post-Money Valuation Owne

Dollar Value % Ownership
Founder Sweat Equity $ 13,973.1 100.0% Founder Sweat Equity
Founder Cash Equity - 0.0% Founder Cash Equity
Investor Cash Equity - 0.0% Investor Cash Equity
Total $ 13,973.1 100.0% Total

Section 5: Returns Analysis

DIRECTIONS
0 None. There's no need to do anything here. This is all calulated from the inputs in the sections above.

(a) (b) (c)

Cash Cash Flows (from Section 2)
Investment Year 1 Year 2
Total Cash Flow to Equity (244.0) 4,238.1 4,452.7
Founder Sweat Equity (98.3% of Total) n/a $ 4,165.3 $ 4,376.2
Founder Cash Equity (0.0% of Total) - - -
Investor Cash Equity (1.7% of Total) (244.0) 72.7 76.4

Returns Summary
Founder Sweat
Equity
Cash Investment n/a
Gross Return 21,023.1
Net Return 21,023.1
IRR(1) n/a
MM(2) n/a
 (1) Internal Rate of Return ("IRR") is the annualized effective rate of return on the Cash Investment. It is the Discount R
value of the future cash flows equal the Cash Investment.
(2) The Money Multiple ("MM") is equal to Gross Return divided by Cash Investment.

Section 6: Equity Ownership Requirements

Directions: Maximum Project IRR

1 This section calculates the Post-Money Ownership Percentage Maximum Project MM
based on eitherthe IRR or MM requirements of the Investor.
2 Input the Investor Required IRR in cell I117 (NOTE: This cannot Sizing Method 1:
exceed the Maximum Project IRR in cell I113). Investor Required IRR
3 The Investor Ownership Percentage required to meet the Post-Money Required Ownership Percen
Investor Required IRR is calculated in cell I123. meet Investor Required IR
4 Input the Investor Required MM in cell I127 (NOTE: This
cannot exceed the Maximum Project MM in cell I114). Founder Sweat Equity
5 The Investor Ownership Percentage required to meet the Founder Cash Equity
Investor Required MM is calculated in cell I133. Investor Cash Equity
Total

Sizing Method 2:
Investor Required MM
Post-Money Required Ownership Percen
meet Investor Required M

Founder Sweat Equity

Founder Cash Equity
Investor Cash Equity
Total
n

Use what you've learned from the presentation to help guide you.

Uses of Capital

e business.

fund the business.

-
under Cash Equity -
estor Cash Equity 244
al Sources of Capital $244

on Model

le Type drop-down box.

own menu.
drop-down menu.

s is sold).

12/31/2015 12/31/2016

Year 2 Year 3
$ 7,087.5 $ 7,796.3
4,452.7 4,903.3
- 7,796.3
4,452.7 12,699.6

aluation Matrix
the sections above.

ue Exit Multiple
1.3x 1.5x
16,683.8 17,965.4
15,861.9 17,063.3
15,101.1 16,229.0
14,395.6 15,455.8
13,740.3 14,738.2

ership Sizing

the sections above.

Post-Money Valuation Ownership

Dollar Value % Ownership
under Sweat Equity $13,973.1 98.3%
under Cash Equity - 0.0%
estor Cash Equity 244.0 1.7%
$ 14,217.2 100.0%

Analysis

the sections above.

(d)
ws (from Section 2) Gross Return Net Return
Year 3 (b)+(c)+(d) (a)+(b)+(c)+(d)
12,699.6 21,390.3 21,146.3
$ 12,481.6 21,023.1 21,023.1
- - -
218.0 367.2 123.1

rns Summary
Founder Cash Investor Cash
Equity Equity
- $ 244.0
- 367.2
- 123.1
n/a 19.1%
n/a 150.5%
he Cash Investment. It is the Discount Rate that would make the present

ip Requirements

ximum Project IRR 1750.50%

ximum Project MM 87.7x

ng Method 1:
estor Required IRR 50.0%
Post-Money Required Ownership Percentages needed to
meet Investor Required IRR
% Ownership Dollar Value
under Sweat Equity 97.2% 13,812.2
under Cash Equity 0.0% -
estor Cash Equity 2.8% 405.0
100.0% 14,217.2

ng Method 2:
estor Required MM 10.0x
Post-Money Required Ownership Percentages needed to
meet Investor Required MM
% Ownership Dollar Value
under Sweat Equity 88.6% 12,595.2
under Cash Equity 0.0% -
estor Cash Equity 11.4% 1,622.0
100.0% 14,217.2
 DO NOT EDIT OR DELETE

NI Rev
Discount Multiple Multiple
20.0% 1.0x 1.00x
22.5% 2.0x 1.25x
25.0% 3.0x 1.50x
27.5% 4.0x 1.75x
30.0% 5.0x 2.00x
32.5% 6.0x 2.25x
35.0% 7.0x 2.50x
37.5% 8.0x 2.75x
40.0% 9.0x 3.00x
42.5% 10.0x 3.25x
45.0% 11.0x 3.50x
47.5% 12.0x 3.75x
50.0% 13.0x 4.00x
52.5% 14.0x 4.25x
55.0% 15.0x 4.50x
57.5% 16.0x 4.75x
60.0% 17.0x 5.00x
18.0x
19.0x
20.0x
21.0x
22.0x
23.0x
24.0x
25.0x
26.0x
27.0x
28.0x
29.0x
30.0x
 DO NOT EDIT OR DELETE
Cash Cash Flows (from Section 2)
Investment Year 1 Year 2 Year 3
(244.0) 4,238.1 4,452.7 12,699.6

DO NOT EDIT OR DELETE

Cash Flow to Investor, Assuming Required IRR
Year 1 Year 2 Year 3
50% (244.0) 120.7 126.8 361.7
- #VALUE! #VALUE! #VALUE!
(244.0) 2,825.4 1,979.0 3,762.8

DO NOT EDIT OR DELETE

Cash Flow to Investor, Assuming Required MM
Year 1 Year 2 Year 3
10.0x (244.0) 483.5 508.0 1,448.8
- 4,238.1 4,452.7 12,699.6
(244.0) 4,238.1 4,452.7 12,699.6
 Year 0 Year 0

- -

E
equired IRR

#VALUE!
8,567.2

DELETE
ming Required MM

$21,390.3 #DIV/0!
$21,390.3 -87.6543259
 Simple Graphs
Graphs provide a simple and easy visual of business trends

Financial Profile
Year 1 Year 2 Year 3
Revenue $ 6,750 $ 7,088 $ 7,796
Gross Profit $ 5,365 $ 5,633 $ 6,196
S,G&A Expenses $ 67 $ 67 $ 67
Taxes $ 1,060 $ 1,113 $ 1,226
Net Income / Net Loss $ 4,238 $ 4,453 $ 4,903
10000
8000
6000
4000
2000
0
Year 1 Year 2 Year 3
Revenue and Profit

Revenue Gross Profit

Net Income / Net Loss

Start-Up Cost Mix

Administrative Costs $ 100 41.0%
Plant, Property and Equipment $ - 0.0%
Development Costs $ 144 59.0%
Marketing Costs $ - 0.0%
Salaries or Consulting Fees $ - 0.0%
Start-Up Inventory $ - 0.0%
Total Start-Up Costs $ 244 100.0%

Administrative Costs
Plant, Property and
Equipment 40.98%
Development Costs
Marketing Costs
Salaries or Consulting 59.02%
Fees
Start-Up Inventory
Year 1 Expense Mix
Administrative Costs $ - 0.0%
Marketing Costs $ 67 100.0%
Salaries or Consulting Fees $ - 0.0%
Selling Costs $ - 0.0%
Total S,G&A $ 67 100.0%

Administrative
Costs
Marketing Costs
Salaries or
Consulting Fees
Selling Costs

100.00%
 Subscription Calculati
The tables below calculate the number of contracts sold, as well as selling com

Year 1 by Month
Revenue Events
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Total # of New Sub. Sold 0 0 0 0 0 0
Total New Sub. Revenue $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Total # of Renewals 0 0 0 0 0 0
Total Renewal Revenue $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Total Subscription Revenue $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Year 1 by Month
Subscriptions Served
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Total # of Prior Subscriptions 0 0 0 0 0 0
Total # of New Sub. Sold 0 0 0 0 0 0
Less: Total # of Attritions 0 0 0 0 0 0
Total Active Sub. at End of Period 0 0 0 0 0 0
Subscriptions Served this Year

Contract Value Year 1

(used to calculate Selling Costs) Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
1-Month Subscriptions $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
3-Month Subscriptions $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
6-Month Subscriptions $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
12-Month Subscriptions $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Total All Subscriptions $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

1-Month Subscriptions
Contract Length 1
Renewal Rate 0%
Subscription Price $0.00 Active
New Sub. Sold Renewals Attrition Total Sub. Sub. at New Sub. Renewal
Month Events End of Revenue Revenue
1 0 0 Period 0 $0.00 $0.00
2 0 0 0 0 0 $0.00 $0.00
3 0 0 0 0 0 $0.00 $0.00
4 0 0 0 0 0 $0.00 $0.00
5 0 0 0 0 0 $0.00 $0.00
6 0 0 0 0 0 $0.00 $0.00
7 0 0 0 0 0 $0.00 $0.00
8 0 0 0 0 0 $0.00 $0.00
9 0 0 0 0 0 $0.00 $0.00
10 0 0 0 0 0 $0.00 $0.00
 11 0 0 0 0 0 $0.00 $0.00
12 0 0 0 0 0 $0.00 $0.00
13 0 0 0 0 0 $0.00 $0.00
14 0 0 0 0 0 $0.00 $0.00
15 0 0 0 0 0 $0.00 $0.00
16 0 0 0 0 0 $0.00 $0.00
17 0 0 0 0 0 $0.00 $0.00
18 0 0 0 0 0 $0.00 $0.00
19 0 0 0 0 0 $0.00 $0.00
20 0 0 0 0 0 $0.00 $0.00
21 0 0 0 0 0 $0.00 $0.00
22 0 0 0 0 0 $0.00 $0.00
23 0 0 0 0 0 $0.00 $0.00
24 0 0 0 0 0 $0.00 $0.00
25 0 0 0 0 0 $0.00 $0.00
26 0 0 0 0 0 $0.00 $0.00
27 0 0 0 0 0 $0.00 $0.00
28 0 0 0 0 0 $0.00 $0.00
29 0 0 0 0 0 $0.00 $0.00
30 0 0 0 0 0 $0.00 $0.00
31 0 0 0 0 0 $0.00 $0.00
32 0 0 0 0 0 $0.00 $0.00
33 0 0 0 0 0 $0.00 $0.00
34 0 0 0 0 0 $0.00 $0.00
35 0 0 0 0 0 $0.00 $0.00
36 0 0 0 0 0 $0.00 $0.00

3-Month Subscriptions
Contract Length 3
Renewal Rate 0%
Subscription Price $0.00
Status of Current Subscriptions
(Contract Month of Subscribers) Total Sub.
Month New Sub. Sold Renewals Attrition 2nd Last
1st Month Events
Month Month
1 0 0 0
2 0 0 0 0
3 0 0 0 0 0
4 0 0 0 0 0 0 0
5 0 0 0 0 0 0 0
6 0 0 0 0 0 0 0
7 0 0 0 0 0 0 0
8 0 0 0 0 0 0 0
 9 0 0 0 0 0 0 0
10 0 0 0 0 0 0 0
11 0 0 0 0 0 0 0
12 0 0 0 0 0 0 0
13 0 0 0 0 0 0 0
14 0 0 0 0 0 0 0
15 0 0 0 0 0 0 0
16 0 0 0 0 0 0 0
17 0 0 0 0 0 0 0
18 0 0 0 0 0 0 0
19 0 0 0 0 0 0 0
20 0 0 0 0 0 0 0
21 0 0 0 0 0 0 0
22 0 0 0 0 0 0 0
23 0 0 0 0 0 0 0
24 0 0 0 0 0 0 0
25 0 0 0 0 0 0 0
26 0 0 0 0 0 0 0
27 0 0 0 0 0 0 0
28 0 0 0 0 0 0 0
29 0 0 0 0 0 0 0
30 0 0 0 0 0 0 0
31 0 0 0 0 0 0 0
32 0 0 0 0 0 0 0
33 0 0 0 0 0 0 0
34 0 0 0 0 0 0 0
35 0 0 0 0 0 0 0
36 0 0 0 0 0 0 0

6-Month Subscriptions
Contract Length 6
Renewal Rate 0%
Subscription Price $0.00
Status of Current Subscriptions
Month New Sub. Sold Renewals Attrition (Contract
2nd Month of Subscribers)
1st Month 3rd Month 4th Month
Month
1 0 0
2 0 0 0
3 0 0 0 0
4 0 0 0 0 0
5 0 0 0 0 0
6 0 0 0 0 0
 7 0 0 0 0 0 0 0
8 0 0 0 0 0 0 0
9 0 0 0 0 0 0 0
10 0 0 0 0 0 0 0
11 0 0 0 0 0 0 0
12 0 0 0 0 0 0 0
13 0 0 0 0 0 0 0
14 0 0 0 0 0 0 0
15 0 0 0 0 0 0 0
16 0 0 0 0 0 0 0
17 0 0 0 0 0 0 0
18 0 0 0 0 0 0 0
19 0 0 0 0 0 0 0
20 0 0 0 0 0 0 0
21 0 0 0 0 0 0 0
22 0 0 0 0 0 0 0
23 0 0 0 0 0 0 0
24 0 0 0 0 0 0 0
25 0 0 0 0 0 0 0
26 0 0 0 0 0 0 0
27 0 0 0 0 0 0 0
28 0 0 0 0 0 0 0
29 0 0 0 0 0 0 0
30 0 0 0 0 0 0 0
31 0 0 0 0 0 0 0
32 0 0 0 0 0 0 0
33 0 0 0 0 0 0 0
34 0 0 0 0 0 0 0
35 0 0 0 0 0 0 0
36 0 0 0 0 0 0 0

1-Year (12-Month) Subscriptions

Contract Length 12
Renewal Rate 0%
Subscription Price $0.00
Status of Cu
Month New Sub. Sold Renewals Attrition 2nd (Contract M
1st Month 3rd Month 4th Month
Month
1 0 0
2 0 0 0
3 0 0 0 0
4 0 0 0 0 0
5 0 0 0 0 0
6 0 0 0 0 0
7 0 0 0 0 0
8 0 0 0 0 0
9 0 0 0 0 0
10 0 0 0 0 0
11 0 0 0 0 0
12 0 0 0 0 0
13 0 0 0 0 0 0 0
14 0 0 0 0 0 0 0
15 0 0 0 0 0 0 0
16 0 0 0 0 0 0 0
17 0 0 0 0 0 0 0
18 0 0 0 0 0 0 0
19 0 0 0 0 0 0 0
20 0 0 0 0 0 0 0
21 0 0 0 0 0 0 0
22 0 0 0 0 0 0 0
23 0 0 0 0 0 0 0
24 0 0 0 0 0 0 0
25 0 0 0 0 0 0 0
26 0 0 0 0 0 0 0
27 0 0 0 0 0 0 0
28 0 0 0 0 0 0 0
29 0 0 0 0 0 0 0
30 0 0 0 0 0 0 0
31 0 0 0 0 0 0 0
32 0 0 0 0 0 0 0
33 0 0 0 0 0 0 0
34 0 0 0 0 0 0 0
35 0 0 0 0 0 0 0
36 0 0 0 0 0 0 0
 Subscription Calculations
contracts sold, as well as selling commission (if applicable), for each type of subscription.

Year 1 by Month
Year 1 Year 2
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
0 0 0 0 0 0 0 0
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
0 0 0 0 0 0 0 0
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Year 1 by Month
Year 1 Year 2
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0

Year 1
Year 1 Total Year 2
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Total
Revenue
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
 $0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

Active
Sub. at New Sub. Renewal Total
End of Revenue Revenue Revenue
Period
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
 0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00

nt Subscriptions Active
h of Subscribers) Total Sub. Sub. at New Sub. Renewal Total
Last Events End of Revenue Revenue Revenue
5th Month Month Period
0 0 $0.00 $0.00 $0.00
0 0 $0.00 $0.00 $0.00
0 0 $0.00 $0.00 $0.00
0 0 $0.00 $0.00 $0.00
0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
 0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00
0 0 0 0 $0.00 $0.00 $0.00

Status of Current Subscriptions

(Contract Month of Subscribers) Total Sub.
10th 11th Events
5th Month 6th Month 7th Month 8th Month 9th Month Last Month
Month Month
0
0
0
0
0 0
0 0 0
0 0 0 0
0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
Year 3

0
$0.00
0
$0.00
$0.00

Year 3

0
0
0
0
0

Year 3

$0.00
$0.00
$0.00
$0.00
$0.00
Active Sub. New Sub. Renewal Total
at End of Revenue Revenue Revenue
Period
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00
0 $0.00 $0.00 $0.00