The Startup Financial Model business planning app was conceived and created by Wade Myers to address what he thinks is the single biggest weakness of most business plans: the lack of a detailed financial model that helps entrepreneurs and investors gain full visibility into all of the assumptions, cash requirements, scalability, profitability, and the ramp up of the business.
Wade created the Startup Financial Model after a frustrating experience of raising $75m of venture capital as a founder/CEO for one of his startups that didn’t turn out as everyone had hoped. One of his biggest issues was that his launch plan was not carefully thought through, especially with the financial and cash implications of the business model (it was an early SaaS play in 1999).
After that experience, Wade created a detailed financial model as he planned his next company so he could have a much better handle on the business model and investment required. He then continued to use the model and refine it for many more startups and investments prior to commercializing the business planning tool as the Startup Financial Model. The business planning app has become the standard used by startup incubators, MBA entrepreneurial finance programs, the largest SBA loan consultancy in the U.S., and entrepreneurs around the world.