10 Types of startup financial models: [Video]

1Three-statement model – This model combines the income statement, balance sheet, and cash flow statement to provide a comprehensive overview of a startup’s financial performance.

2 Discounted cash flow (DCF) model – This model used to calculate the present value of a startup’s future cash flows, which can be used to value the business or make investment decisions.

3 Merger and acquisition (M&A) model – This model used to assess the financial impact of a potential merger or acquisition on a startup.

4 Initial public offering (IPO) model – This model used to forecast a startup’s financial performance in the lead-up to and after an IPO.

5 Leveraged buyout (LBO) model – This model used to assess the financial feasibility of acquiring a startup using a significant amount of debt financing.

6 Sum-of-the-parts model – This model used to value a startup by valuing its individual business units or assets.

7 Consolidation model – This model used to combine the financial statements of multiple startups into a single set of financial statements.

8 Budget model – This model used to forecast a startup’s financial performance for a specific period of time, such as a month, quarter, or year.

9 Forecasting model – This model used to predict a startup’s future financial performance, such as its revenue, expenses, and cash flow.

10 Option pricing model – This model used to value options on a startup’s stock or other securities.