The Startup Station was created to help you model ventures with no financial history. In this article and corresponding video, we discuss our approach in more detail.
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Why is it so hard to create assumptions for early-stage ventures?
Modeling an early-stage venture is especially hard because there is no baseline for any financial estimates. Yet, to position your startup as an attractive investment, you must show growth in revenues and profits. The question is how fast they should grow and where that growth comes from.
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The main difference in modeling early- and late-stage ventures
In our opinion, the main difference between modeling early- and late-stage companies is the level of granularity in financial projections required to justify the resulting financials. The earlier stage a venture is, the more detailed strategy representation is required for a financial model to be credible.
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How do you model established companies?
Let’s consider revenues.
For a well-established company, such as IBM and Google, there is no need to model HOW exactly they generate their revenues and it’s enough to forecast revenue growth rates directly. The reason is that they have a proven record of producing results and there is enough financial history to see what those results might be. The only two questions any research analyst must answer are:
# 1 How the past trends will change given the current company’s strategy, which may include launching new products or business lines, expanding into new markets, cost cutting, or M&A activity, and
# 2 How confident they are that the company’s management team can execute on the new strategy.
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What adjustments do you need to make to model early-stage companies?
Unfortunately, just modeling revenue growth rates does not work for a startup because it does not explicitly show where this growth comes from. In the absence of any financial history, the absence of revenue-generating logic makes any resulting numbers unjustifiable.
That is precisely why you need to provide a higher level of granularity in modeling those companies and think about the concrete actions a company must take in order to generate revenues. Those actions will include its go-to-market strategy as well as other business-model specific considerations.
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How can you formulate credible assumptions in the absence of any financial history?
There are two types of assumptions you will need to make: discretionary and non-discretionary.
Discretionary assumptions are in your control and may include pricing strategy, the size, and allocation of your marketing budget, and the launch timeline of your revenue streams.
Non-discretionary assumptions are those you can’t easily affect. They may include conversion rates from different marketing channels, a conversion from a free trial to a paid customer, and renewal rates… They would eventually come from your data, but can initially be estimated based on industry averages, preferably for companies at your stage of development. If such data is not available, you can make the industry rates more conservative to match the results you may expect to realize as a young company.
The outcome
This process allows you to formulate the underlying logic for your business model and financials. The resulting financial model is not only your negotiating tool with investors which accelerates the funding process, but it is also an analytical aid you can use to build a successful business from the start.
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About Author
Victoria Yampolsky, CFA, is the President and Founder of The Startup Station, a comprehensive resource for modeling and valuing early-stage startups. She evaluates the financial feasibility of business models and specializes in the financial modeling and valuation of pre-revenue companies. She also created a finance curriculum for early-stage founders and launched The Startup Station’s educational program in 2015. Since then, more than 1,000 founders have attended her online and in-person finance classes and learned the basics of financial modeling, valuation, and startup financing.
Previously, Victoria worked for the Deutsche Bank Research Department and performed IT consulting for CapGemini’s Financial Services Division. Victoria holds a Bachelor’s Degree, Cum Laude, in Computer Science, with a minor in Mathematics, from Cornell University and an MBA, with honors, from Columbia Business School. Victoria is also on the Advisory Board of the Computing and Information Science (CIS) Department of Cornell University.
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Irina Sychov – Founder of Women’s Business Community 
Marcia Dawood is an early-stage investor who serves on the Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee. She is a venture partner with Mindshift Capital, a member of Golden Seeds, and the chair emeritus of the Angel Capital Association (ACA), a global professional society for angel investors.
Sanford is the Chief Strategy Officer of PowerUp Globally, a strategic and financial planning initiative aimed at revenue-generating seed-level female-led ventures.
Thierry Vodounou, PMP, is Managing Director & Founder, 
Victoria Yampolsky is a serial entrepreneur, strategic CFO advisor for numerous early-stage start-ups and expert in financial modeling and valuation. She’s a passionate advocate for female founders and fair access to capital for all.
“As a busy entrepreneur, I was drawn to PowerUp Globally Coaching Program’s focus on cultivating resilience, emotional intelligence, and a growth mindset for managing the inevitable stresses of building a business. From the first session, the small group size allowed a safe, supportive environment to openly discuss challenges. 
“What I appreciated most about this program was the opportunity to stop during the work day and have an opportunity to reflect. In addition to having access to pre- and post-session materials that were profoundly useful (which I will undoubtedly go back to), being asked to stop, breathe, and process was a gift that carried throughout the day, week, and program. I recommend this program to any female founder or business owner in the midst of building her business.”
“Atending the Power Up Coaching pilot has been an absolute game-changer for me. Victoria and Hamp’s expertise, passion, unwavering support and genuine commitment to empowering women in the entrepreneurial space were evident in every session. Also, what truly made this journey unforgettable were the incredible women I met along the way. Sharing stories, challenges, and dreams with fellow entrepreneurs created a bond that transcended mere networking—it felt like finding a tribe where I truly belonged. It has equipped me with invaluable skills, insights, and a network of like-minded individuals who continue to inspire and support me on my entrepreneurial journey. The lessons learned and the connections made have become pillars of strength in my entrepreneurial journey, guiding me through the highs and lows with gratitude, grace and resilience. I know that the PowerUp Coaching program will always be more than just a program to me—it’s a part of my story, a chapter filled with growth, friendship, and empowerment. I’m immensely grateful to Victoria and Hamp and The Startup Station for helping me realize my potential as a woman entrepreneur.
“What a valuable experience!
“Victoria is one of the smartest, and most talented financial analysts out there. She has created the financial models for 2 of my companies, to which we have raised over $20M using her financials and valuation reports. She is very professional and always makes you prove the assumptions:) She will always be a vital part to my businesses.”
“Victoria truly helped “break me in” as a CEO and startup founder. With her guidance, we’ve discovered the best routes to forming a business model according to the specific needs of my company. From monetization avenues to acquisition strategies and everything in between, Victoria patiently guided me and diligently crafted a meticulously laid-out plan and financial model I feel confident, even proud, to present to prospective investors, as it points to the breadth & scope of work we’ve accomplished together. Victoria is also extremely generous with advice, resources, and introductions. I currently work with a marketing team she introduced to me and I am very happy with them, as well.”
“Victoria really distilled down the financial model to the inputs that need to be discovered in order to determine business viability. Her attention to detail and experience show in taking those inputs and filling out the rest of the model. These are the real numbers that you need for investors.”
“Victoria provided me with great knowledge for the financial projection and reviewed my pitch deck where she provided me with great pointers. She definitely is somebody I count as my inner circle of advisors and recommend her as the go to person for any start up.”
“We are a couple of engineers going through lot’s of trials and errors trying to launch our startup so meeting with Victoria was priceless in terms of getting a fresh unbiased perspective on our business model and getting advice on how to move forward.
“I have the greatest appreciation for Victoria’s contribution in analyzing financial trends and developing the monetization strategies for my business. She is not only an experienced financial analyst, but she is also very creative and gave my business many important suggestions. I felt comfortable and willing to reveal information easily, which helped make the valuation process easier. Victoria can see the big picture almost immediately, and at the same time she is a stickler for details. These attributes make her a perfect financial advisor and mentor for entrepreneurs. Further, Victoria, once given a task, is completely dedicated to it. She has a keen ability to process and synthesize information and make the right decisions, and she comes with the highest recommendation.”
“Victoria is an amazing resource that every start-up should have. She is whip smart and diligent. We worked with her on the valuation of our company and she’s been an invaluable resource in refining our assumptions, revenue and expenditure models. If you think you understand the fundamentals of your own business model, talk to Victoria and get ready to learn so much more!”
“I had the pleasure of working with Victoria for building a working financial model for my business. Her expertise and acumen are not only impressive, but her personable nature made her a joy to work with as well. She was able to offer valuable insights and direction as we strategically built out a financial model, utilizing reliable data assumptions that translate to a usable document for my business. The result and end-product proved the value of both the time and monetary investment. I couldn’t recommend her enough as a resource for any entrepreneur looking to build out a financial model, financial roadmap and/or valuation of their enterprise.”
“Victoria Yampolsky came highly recommended by a colleague of mine and I’ve been fortunate to work with her! She completed the valuation and the financial model for our startup, EnergyPoints. Her unique framework for modeling early-stage ventures allowed us to refine our business plan and use strategy and industry standards to credibly formulate assumptions. Victoria is a Columbia Business School grad and CFA, and her company, The Startup Station, has done 100s of valuations and has an impressive track record. She presented her valuation to two national banks with our accountant, and in both scenarios, she was praised by the level of detail that went into her extensive valuation. I can’t recommend her highly enough!”
“Victoria was a key advisor for Predictive People – as an early stage startup we had tons of questions and we needed professional guidance to sort them out. I am really glad we had her by our side to solve them all, ending with a solid business plan and financial projections. I can’t recommend her more, she’s professional, fast, empathetic, and incredibly smart, a true partner for any startup.”
“Victoria is trustworthy, knowledgeable and customer-focused startup strategic CFO. I’ve been impressed since day 1 with the responsiveness, thoroughness and overall professionalism of Victoria. According to the traditional scenario of almost all early stage startups, the founders are involved in all processes of the company formation. So I am no exception without having a financial education, without professional Excel skills – I nevertheless decided to build a financial model on our own. Honestly, it seemed impossible. But in the end, we did it in a total of 3 weeks. I want to express my deepest gratitude for professionalism and incredible talent to motivate all of our team members. Victoria has a unique ability to get into the essence of the business very quickly, to think very flexibly and innovatively – which is very important for our startup.
“I was a student and client of Victoria through The Startup Station and cannot highlight enough how helpful the process was for our company in reaching our first funding milestone and personally for me. Victoria is a fantastic teacher and recommend her financial modelling courses to anyone. We also worked one to one to refine our company model/financial roadmap and Im proud of my newly developed, ninja-level Excel skills. Paraphrasing from someone famous “Clarity trumps confidence any day of the week” and it’s what I feel from working with Victoria.”
“Building a financial model with Victoria and The Start Up Station for a mutual client was an illuminating experience!
“Victoria is a rare find in the startup world. She’s brilliant with startup financial strategies and has this no-nonsense work ethic that proves to deliver results. Victoria worked with a participant of 2020 Startups, a startup founder, and within a couple of months the founder raised capital. Victoria has done several workshops and speaking engagements at 2020 Startups and is always insightful and held in the highest regard by the audience.”
“Victoria and The Startup Station Team were absolute game-changers for Ovaterra. Victoria served as my right-hand CFO through fundraising, M&A, liquidity crises and more — always guiding the ship with calm, detail-oriented and strategic advice. I would recommend her and her team to any Founder or executive who needs a strategic, fractional CFO to guide your business to the next level.”
“Victoria, we raised $1.4M! It’s finally 
“In business, and especially with startups, getting to a place of clarity around the business and financial models can be challenging even for the most experienced professional. Victoria brings the right mix of business and financial know-how and quickly understands the moving pieces. As such, she’s able to provide an excellent product, a deeper sense of understanding about the project based on its’ needs, and a sense of calm and assurance that the challenges faced will be dealt with in a way that drives growth.”
“I had the pleasure of working closely with Victoria as fractional CFO of our startup. Her expertise in business and financial modeling is truly exceptional. Victoria played a pivotal role in helping our company think through every aspect of our business, and her ability to create a comprehensive model was nothing short of impressive. She not only provided a clear plan for our future but also identified areas where we could improve and grow.
“If you’re raising capital and want to shine when pitching to investors, I highly recommend you choose Victoria Yampolsky and the Startup Station as your resource for high performance results. Victoria is extremely well versed in all aspects of raising capital and the startup landscape. She provides clients with outstanding tools, applicable advice and thoughtful insights to support their fundraising efforts.