Financial Models for Startups

<div><div>My work was dedicated to the analysis of financial modeling for young companies &ndash; startups.</div><div>The main goal of the paper was to propose a financial model with a particular structure and</div><div>content that would take into account all special features of startups which are challenging to</div><div>financial analysts who try to value the business. Another goal was to create a model that would</div><div>be persuasive for an investor willing to finance the business, but waiting for the detailed</div><div>description of the business with strong argument in favor of high perspectives and expected</div><div>expansion. The theoretical model I proposed should include all the necessary statements, such as</div><div>P&amp;L statement, balance sheet, debt modeling, net working capital calculations, cash flow</div><div>statement and project summary. The uncertainty and risk are present in risk-premia and revenues</div><div>that are assumed to have some distribution. The significance of results is confirmed statistically</div><div>from replication of the data. The problems appearing in startup valuation are partly solved as</div><div>they are considered in cost of equity and revenues.</div></div><p>&nbsp;</p>