basic marketplace excel model for startups

Basic marketplace financial fundraising model in excel

This is the basic version of the 50Folds marketplace model designed to build a simple model faster (at a lower price).

This is for all kinds of marketplace companies that have “two sides”. Supply and demand sides are modeled out. Choose to include 5 revenue streams on the demand side and 3 on the supply side. Model registrations and marketing costs simply then convert them to customers. 3 years (36 months) of detailed P&L for actual, forecast and combined, as well as cash based analysis. Manually plan out your hiring schedule simply. Tonnes of charts and KPIs. Unique source and use sheet illustrates your plan for your pitch deck. And a lot more…

Check out the full marketplace model

Don't want the basic model and want to check out the full version? Head over here and have a look.

See the full model

Video introduction to the model (Coming soon)

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High level model walkthrough

Which model to get: basic or full?

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Video training course

There is a video on every sheet of the model to explain how it works and to fill it in.

To reduce the length of this sheet I’ve put them on a separate page.

Are you a marketplace company with two sides to figure out? Do you want to do this quickly and simply?

Do you have multiple revenue streams on both the demand and supply side? 

As the CEO or CFO (or sole founder…) are you wondering how the hell you can model all this for your fundraising on a deadline?

You should be concerned… because it’s hard as hell. Trust me. Sure, you might find a free template (I’m happy to send you links to the free models online), but something actually complete and useful that just works? Forget it.

I know, because I had to do it myself.

I started making models as I was raising for one of my SaaS companies and there just wasn’t anything out there good enough. So I blew a few weeks and made something it turns out others think is fairly nifty.

A few years later I’ve made more and this marketplace model came from popular request.

It’s also worth noting that every time I build a new model and figure out some improvement, all 50Folds models get updated with the new learnings and features. I recently shipped a new version upgrade for the SaaS model and here’s what one happy customer had to say:

Alexander, I wanted to take a moment to say I really appreciate the updates.  Sometimes, people put out things and never come back to nurture the product over time.  Really appreciated.  BTW, index/match and sumproduct are waaaayyy better then vlookup, so kudos!

Cheers,
Darren Spurgeon”

I’m an ex-M&A banker and VC, and I’ve literally spent months of 100 hour weeks modelling to be able to make this model available to you. Feel free to ask your M&A buddy to build something for you for a few grand. I’ve been sent those models (as I’ve been asked to make a new one after). They’re not terrible, but they don’t make sense as they don’t understand how startup works.

I don’t build these models for kids. This is the simple version of the full marketplace model, but there is still a lot of the really valuable functionality built in. If you know what your pricing is, what you think a reasonable churn rate is, your hiring shedule etc… you don’t have to code one formula! And you get a serious result.

This is the only simple but powerful marketplace model on the internet which can serve your core marketplace needs. If someone had built it before, I sure as hell would not have taken the very deep pain to do so.

If you are looking to impress investors with a quick, but thoughtful plan, this is it.

Below we will look at the high level features of the model, screen shots on each sheet, there’s a video on each of the sheets and some further descriptions.

If you have questions about the model, feel free to ask.

Details on the model

Model Q&A

Buy now

The model will be immediately emailed to you. Payment is secured with Stripe. This would cost you $20k to build... if you could find someone who understood what you do.

€99

Buy now + blank version

This version includes two models, both an example and blank version in case you don't want any dummy data in the model

€129
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The marketplace model architecture

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  • Fully integrated model: Changes in one sheet flow through the whole model automatically
  • Logical flow: Registrations, conversions and revenue are all segmented so they connect logically
  • P&Ls: Actuals and forecasts have their own P&Ls. These are then combined into a 'combined sheet' so you can see the progress month to month
  • Other: Charts and KPIs have their own sheets. The key data from the large calculation sheets are presented so you don't have to dive into them

Turn on and off revenue streams

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  • Choose revenue streams: Pick the ways you make money and simply turn off the revenue streams you don't use

3 revenue streams on the supply side

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  • 3 revenue streams built in: Turn revenue streams on and off at a flick. Basic assumptions get you the results you need
  • Transaction revenue: Normal stuff. You make money when transactions happen
  • Member revenue: If you have members that pay each month, they are members
  • Listing revenue: you charge suppliers to make listings. Normally for later stage companies

5 revenue streams on the demand side

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  • 5 revenue streams built in: Turn revenue streams on and off at a flick. Basic assumptions get you the results you need
  • Transaction revenue: Normal stuff. You make money when transactions happen
  • Affiliate revenue: Some startups are pass through to other platforms.I allow you to do CPA and CPL on these. They add into GMV but you need to consider your model here as accounting can vary
  • Member revenue: If you have members that pay each month, they are members
  • Listing revenue: you charge suppliers to make listings. Normally for later stage companies
  • Ads: You make money from ads. You can be simple or detailed with assumptions around banner, interstitial, reward, offer wall, notification and native. 

Simply forecast registrations

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  • Simple: I kept being asked to make simpler and faster ways to do forecasts so I made it in this model. Bare minimum, but what you need and no more

Convert registrations to customers

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  • Allocate registrations to 3 customer types: Create three avatars: basic, premium, and pro who have their own profiles
  • Adoption curve: In this version, all registrations can convert to customers in the first month
  • Churn: Two ways to calculate churn- 1/ month retention and 2/ % churn method

Detailed Profit and Loss statements

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  • 3 P&L sheets: Actual, forecast and combined
  • Non key assumptions in line: If you want to add discounts, cancellations and bad debt, you can easily add in a percentage in line
  • Fundraising: When you plan on raising money, you just input the amount into your cash balance
  • Accounting and cash flow: Two main parts. The main part follows normal accounting practices, and tax is done simply (There is no sheet for Tax to manage advanced things like NOLs in this version). The bottom of the sheet converts accounting to operating cash flow so you know when money is actually going in and out
  • Complex adjustments: Bonuses are paid on year end in cash flow, but accrue in the P&L. Same for tax. Accrued bonuses from actuals are factored into your forecast for when they need to be paid

Simple staff and expense forecasting

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  • Simple hiring: Just add the headcount you plan on hiring in any month by category. Easily add benefits/tax and bonuses on top, as well as add a date you want to increase their salary (say at Series-A)
  • Simple costs: Quickly add all the 'other' costs you need like rent, onboarding costs (e.g. laptops for CAPEX) of staff, and whatever costs you need without having to over think it. Most costs are calculated my multiplying the average cost be the number of staff you have

Detailed KPIs (186 rows)

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  • Detailed KPIs: 186 rows of detailed KPIs
  • CAC/LTV: See your key KPIs calculated with based on both supply and demand side. There are also basic and fully loaded variants
  • Segments: KPIs for key financials, margins, cost structures, cash burn rate, churn, unit economics, registrations, and headcount
  • Dates: Both monthly and annual KPIs

Runway calculator

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  • Runway calculations: Understand your gross and net burn over your defined runway (in months). See how many months your planned fundraise will last based on your model forecasts
  • Detailed operating expenses: See exactly where money is being spend per department over your runway

Payment costs

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  • Payment costs: Simply manage your payment costs with credit card, PayPal, bank transfer and payment on delivery

The sheets in the model

FormattingInput your model start dates and basic formatting assumptions
ControlModel variables are centralised here. You can set sheets to be simple or detailed, how marketing works etc. You can start out with simple calcs and then make them more detailed if you like. You can also turn some sheets on/off
P&L ActualThis is the P&L of your actual numbers. Put in your actuals and they get represented in your combined P&L. A few actuals feed into the forecasts
P&L ForecastDetailed forecast P&L of your startup. Output of all your assumptions. This is the P&L you care about most
P&L CombinedThis combines the forecast and actual sheets together so numbers progress
P&L for deckThis combines the summary forecast and actual sheets together for the first 12 months and for 3 years annual to insert in your pitch deck. Do whatever you want to it
KPI ForecastA detailed summary of all your forecasted KPIs
ChartsSummary of charts from across sheets. Use to sense check trends etc
Source and UseUse this to figure out how much to raise and to present your ‘sources and use’ of money you raise in your ‘ask’ slide
PaymentCalculates your payment costs
StaffForecasts for all staff, and all the related staff and G&A costs
Revenue – SCalculates your revenue for the supply side. You can choose what streams you have
Revenue – DCalculates your revenue for the demand side. Basically the same as the supply sheet
ConversionAssumptions for converting registrations into customers and the calculations for it
RegistrationsForecast how many registrations you will have on the demand and supply side as well as marketing costs

Want this model in a different currency? Now you can!

This model uses formatted currencies in $. I often get asked if it is available in other currencies such as €? So I made an Excel PC addin to do that (It was hard!)

At the press of a button you can now convert the model into 17 different currencies. You just need to purchase the productivity addin.

Here are the currencies you can use with the macro:

Currency listThe format you will see
EUR
USD$
GBP£
YEN¥
INR
Kronekr
BAHT฿
RUB
Peso
BRLR$
RMRM
RpRp
HKDHK$
ILS
KPW
RMB¥
CHFCHF

Productivity addin

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More than likely, you aren't a huge Excel nerd like me, so you probably don't know about macros? These are hacks to make modeling in Excel much more faster and less painful. I love them!

I've been making models for years, so you can be sure I know what is useful and what is not. I decided to not just make the currency conversion macro, but add in all my most used hacks. You just hit a button and it will do handy things.

What can you do?

  • Automatically format your cells so they have 'investment banking' standard black, blue and green
  • Change the zoom and cell position of every sheet so it looks great when others read it
  • Save a backup of your model (v1, v2, v3) at the push of a button so you never get a corrupt model
  • Add error checks to your formulas
  • And a whole bunch of other nerdy things you'll understand when you are making models yourself!

NOTE:

  • This is for PC. Gates hates Mac so.... All the plugins other than 'check sheet sizes' work in Mac, but I don't warrant anything if you are on Mac (Sorry). I'm trying to find a developer to rewrite the code for Mac so the images, tips etc work too
  • Currency conversion only works on 50Folds models. It won't on any other model (My code looks for certain cells... There is a hack- ask if you want to know)

Buy now

The model will be immediately emailed to you. Payment is secured with Stripe. This would cost you $40k to build... if you could find someone who understood what you do.

€99

Buy now + blank version

This version includes two models, both an example and blank version. Do you value your time?

€129

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