Venture Capital Fund Model, built in Causal
Originally published: 12/06/2020 14:22
Last version published: 15/06/2020 16:48
Publication number: ELQ-51289-4
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Venture Capital Fund Model, built in Causal

Forecast a venture capital fund and evaluate investments, proceeds, multiples, IRRs and standard fund metrics.

This forecasting model for a venture capital fund or angel investment strategy uses assumptions around the investing strategy and fee structure to create a forecast of the overall returns of the fund. The model is built in Causal, a web-based platform for building dynamic financial models.

Model Highlights
- The model is built in Causal, a web-based platform for building dynamic financial models.
- The model uses range-based assumptions for check sizes, reserve for follow-ons, management fees, carry, and gross exit multiples to create probability-based distributions of proceeds, returns, and performance metrics.
- It intentionally does not forecast cash flows per year and IRRs, just overall returns and multiples. Contact for questions on modeling cash flows per period.
- The model's timescale is dynamic, and can be adjusted to be monthly, quarterly, or annual, and the length can also be edited to extend for any time period.
- Optionally, link to Google Sheets automatically pull in continuously-updated historical data from an external model and let the Causal model use past data to forecast the future.
- Model results can be exported to Excel or Google Sheets for any additional analysis and presentation, and can be linked to Google Sheets for updating and use with other models
- Embed your model in Notion, Medium, Quora, and basically anywhere else that allows embedding.

How to use
- Access the model by downloading the .txt file and copy and pasting the link into your web-browser.
- Click on a variable in the Inputs section and change its value to see the rest of the model update.
- Many Inputs are ranges, allowing you to input a range of potential values for your assumption, and the model will show a distribution of the outputs based on the ranges in your inputs.
- To modify, edit, or save a version of the model to your own account, click Clone Model (top-right) to create a fully-customizable copy that you can use for your own business.

Edit Anything
Edit anything; all formulas are unlocked for editing and transparency, add on or edit for your specific situation. The model can be edited simply by using Causal's natural-language based formulas.

Personal Support
- Live chat or email support anytime.
- Built by a professional financial modeler with 20 years of experience as an investor and running forecasting inside startups. Responsive, personal support — chat, call, or email — and available for custom services.

This Best Practice includes
1 customizable model in Causal

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Further information

Project a venture capital fund or angel investment strategy in a simple, straightforward way that helps understand the variability in outcomes from a few key variables. Users can copy and modify the model in Causal.

Projecting a new fund or investment strategy for investing into equity or convertible note instruments into companies where the returns are derived from one-time exits

Does not model venture debt or funds with revenue-sharing strategies, can be edited in Causal if needed.


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Discussion feed for Venture Capital Fund Model, Built In Causal

The user community and author are here to help. Go ahead!

  • Taylor Davidson
    Hi! Quick question: do people understand how to access, create a Causal account, copy, and edit the model in Causal? I've tried to make it as efficient as possible - the .txt file with a link is the only way that Eloquens allows me to link to the model - but if there are ways to make the onboarding process easier, let me know.

    arrow_drop_uparrow_drop_downReply reply

    4.5 / 5 (19 votes)

    please wait...