Marketplace financial model cover

Marketplace financial fundraising model in excel

This is for all kinds of marketplace companies that have “two sides”. There is no model like this on the internet. Supply and demand sides are fully built out. Choose to include 6 revenue streams on the demand side and 4 on the supply side. A full stack of marketing options from paid to channel sales, drive registrations with assumptions about how registrations convert to customers. 3 years (36 months) of detailed P&L for actual, forecast and combined, as well as cash based analysis. Multiple options to calculate marketing (e.g. Ratio to demand, ratio to supply). Manually plan out your hiring of staff and automate sales and support staff depending on how you scale. Charts, KPIs, all your COGS mapped out. Unique source and use sheet illustrates your plan for your pitch deck. And a lot more…

Who it is for Ecommerce startups that are a real marketplace. There is both a supply and demand side (Both are modeled specifically). Think Etsy, eBay, Uber etc. The model covers listings, ads, member, payment, transaction, and affiliate revenue streams
My model is a bit different? If the core of your business is a marketplace and you know excel, you can edit the model to suit your needs.
Does this model fit me? If you are more SaaS focused look at the SME SaaS model. If you are more like a Shopify startup with inventory, look at the ecommerce model.
Who does this suit? You take your business seriously and want to think through every aspect of it in a lot of detail. You care about metrics etc.
Who this is NOT for! You want a model done asap just because an investor asked for one and you don't care and can frankly send them anything. This will take you too long to do properly.
Why should I really spend cash on this? 2 reasons: 1/ you couldn't even hire someone to make this, 2/ it's not a model- it's a structured learning process. You need to use it to understand what I'm saying

Video introduction to the model (Coming soon)

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High level model walkthrough

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 automatically onboard customers (Demand side), or use a sales team to support the conversion of registrations to customers (Supply side)? Do you have multiple revenue streams? 

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

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 was 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. There are a granular assumptions and you need to understand high-level details of your business. But if you know what your pricing is, what you think a reasonable churn rate is… you don’t have to code one formula! And you get a serious result.

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

The 50Folds marketplace financial model is the most comprehensive and powerful fundraising excel model available for marketplace founders. Nothing else comes close. If you are looking to impress investors with a thoughtful plan, this is it.

If you truly want to understand your operations in detail, then download it now.

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

If you aren't sure about models ask before you buy and I will explain. There aren't returns on digital goods.

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.

€319

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

€369
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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: Expenses, marketing 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

Control the model from one place

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  • Kill switches: Turn sheets on and off from drop down menus. Don't do channel sales? Just turn the sheet off
  • Choose revenue streams: Pick the ways you make money and simply turn off the revenue streams you don't use
  • Marketing methods: Choose the means you want to do marketing. You can opt to do things in a lot of detail or simply. You can also choose 3 ways do calculate registrations

4 revenue streams on the supply side

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  • 4 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
  • Payment revenue: You charge suppliers for payments. This will be a delta to the COGS in the expense sheet

6 revenue streams on the demand side

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  • 6 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 (I assume you don't take payment on these)
  • 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
  • Payment revenue: You charge suppliers for payments. This will be a delta to the COGS in the expense sheet
  • Ads: You make money from ads. You can be simple or detailed with assumptions around banner, interstitial, reward, offer wall, notification and native. 

Cohort power

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  • Granular modelling: The entire model is based on monthly cohorts. This is complicated to build but enables you to do a lot of things you couldn't without them.

4 ways to forecast registrations

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  • 4 ways to forecast registrations: I kept being asked to make simpler and faster ways to do forecasts so I made them here
  • Marketing driven: Detailed with 5 sheets on both of the supply and demand side. Get into a lot of nerdy detail
  • Manual supply and demand: The simplest way to forecast where you just pick a number for both sides and grow it with a %
  • Ratio to supply: You do detailed forecasts for the supply side and the demand is simply done as a ratio
  • Ratio to demand: You do detailed forecasts for the demand side and the supply is simply done as a ratio

Convert registrations to customers

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  • Allocate registrations to 2 customer types: Choose whether your registrations convert to customers automatically or are sales supported
  • Allocate registrations to 3 customer types: Create three avatars: basic, premium, and pro who have their own profiles
  • Adoption curve: All registrations can convert to customers in the first month or over time

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 (There is a sheet for Tax to manage NOLs as well as depreciation and amortisation following Investment Banking standards). 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

Staff and general costs can be detailed or basic

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  • 2 methods for forecasting staff: Switch between the basic and detailed method for forecasting your staff requirement. If you want to fill in the model faster, choose the basic option. If you have a detailed hiring plan, pick the detailed version
  • Automatic forecasting: Sales staff, customer care etc can automatically be calculated in other sheets. These feed into both the basic and detailed version so you can choose how detailed you want to be with a flick of some switches.
  • Scale recruitment as you need: Opt to hire recruiters when you hire [5 or more] new people a month so you don't have to think about how many recruiters you need
  • Granular control over hiring: Easily add benefits/tax, choose the date you hire/fire staff and the date you want to increase their salary (say at Series-A)
  • Other costs: Quickly add all the 'other' costs you need like rent, onboarding costs (e.g. laptops) 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

The sales team ramps up to productivity

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  • Build a sales team: Easily build a sales organisation with account execs (AEs), sales directors, SDRs and tech assistants. They scale by  the number of AEs you need to hire to hit your targets. You only need to make 6 assumptions to make this all work
  • Productivity ramps: Define how many months it takes for new AEs to hit their quota
  • Hiring based on supplier listing targets: You define what % of your revenue is sales supported and what the revenue target of an AE is, and the model knows your existing capacity and tells you how many people you need
  • Integrated into the staff sheet: Sales staff are fed into the main staff sheet so everyone can be seen in the same place
  • Cohorts: Cohort modeling knows what is required on a monthly basis. You can't get more detailed and accurate than that

Customer care and success automated

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  • Integrated with staff sheet: Flows into the staff sheet automatically
  • Switch on and off: Turn the sheet on or off with a flick of a switch if this is too detailed for your stage
  • All support staff covered: 2 sections for customer support and customer care for both demand and supply. Customer support covers your ongoing needs and customer success covers on-boarding of new customers
  • Simple but detailed: Defined what % of customers need help and how many minutes they need on average, and the model tells you how many staff you need

Detailed KPIs (207 rows)

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  • Detailed KPIs: 207 rows of every KPI I could think of
  • 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, funnel metrics, and headcount
  • Dates: Both monthly and annual KPIs

Complete marketing

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  • Granular assumptions: Control how traffic turns into trials by setting conversion rates
  • 10 marketing sheets: Main marketing sheet gets fed by 4 marketing activity sheets which are all integrated. Paid, organic, email, blogging, social and channel sales. Duplicated for both supply and demand side
  • Growing too large?: In built calculations to stop you growing larger than your defined market. Turn it on and off

Channel sales as well

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  • Channel sales: Add a new acquisition channel, or turn it off with the flick of a switch
  • CPA and CPM: Pay your channel partners on a CPA or CPL basis
  • Staff included: Channel sales staff are automatically calculated based on how many leads a month they can handle

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

Depreciation and tax

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  • Control depreciation and tax: Simply manage the boring accounting bits with only a few assumptions like an M&A banker would
  • Depreciation: Accounting for depreciation
  • Tax: Calculate when you need to actually pay tax. Net Operating Losses (NOL) accounted for

Payment and tech costs

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

The sheets in the model

Formatting Input your model start dates and basic formatting assumptions
Control Model 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 Actual This 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 Forecast Detailed forecast P&L of your startup. Output of all your assumptions. This is the P&L you care about most
P&L Combined This combines the forecast and actual sheets together so numbers progress
P&L for deck This 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
Dep – Tax Calculate your depreciation (there is no amortisation) and your tax simply
Charts Summary of charts from across sheets. Use to sense check trends etc
Source and Use Use this to figure out how much to raise and to present your ‘sources and use’ of money you raise in your ‘ask’ slide
KPI Forecast A detailed summary of all your forecasted KPIs
Expense calcs Calculates your customer care related and technology costs, which aren’t calculated directly in the Staff sheet
Staff Forecasts for all staff (Other than support and sales staff), and all the related staff and G&A costs
Support Staff – D & S Calculates customer support & success staff automatically on the basis of your forecasts
Sales Staff – S Forecasts your sales staff requirement automatically on the basis of your sales forecasts. I assume you will only have sales team for the supply side
Revenue – S Calculates your revenue for the supply side. You can choose what streams you have
Revenue – D Calculates your revenue for the demand side. Basically the same as the supply sheet
Conversion Assumptions for converting registrations into customers and the calculations for it
Registrations You use this sheet for the simpler ways of calculating registrations from marketing. If you do the detailed marketing everything effectively just flows from the marketing to conversion sheet
Marketing – S Centralises marketing traffic from all the marketing sheets on the supply side. Applies conversion rates to create ‘registrations’ on your site (Which then buy in the conversion sheet).
Marketing – D Same as the supply sheet but for demand
Paid & organic – S Organic growth and paid traffic to the site. Feeds to the traffic build in ‘Marketing’
Paid & organic – D Same as the supply sheet but for demand
Email – S Calculates the sign ups to your email database. Feeds to the traffic build in ‘Marketing’
Email – D Same as the supply sheet but for demand
Blog & Social – S Calculates the traffic that comes from promotion activities by blogging and social media. Feeds to the traffic build in ‘Marketing’
Blog & Social – D Same as the supply sheet but for demand
Channel Sales – S Calculates the leads from channel partners and supporting staff costs. Feeds to the traffic build in ‘Marketing’ under leads and in the staff costs
Channel Sales – D Same as the supply sheet but for demand

Too large or too expensive?

If you're a small startup and need a more basic model, I've made a basic version of the model to help you.
Check it out here:

Basic model

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 list The format you will see
EUR
USD $
GBP £
YEN ¥
INR
Krone kr
BAHT ฿
RUB
Peso
BRL R$
RM RM
Rp Rp
HKD HK$
ILS
KPW
RMB ¥
CHF CHF

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.

€319

Buy now + blank version

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

€369

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