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Capital & valuation
The fundraising model
The three-statement forecast, use of funds, and runway a lender or investor expects — showing how much is needed, when, what it buys, and how it is repaid or returned.
Owned by: VP / CFOTest band: VP / CFO
In practice
Raise for 18–24 months of runway, from the downside case. A model that only works in the base case is a model that fails in month nine.
The kind of thing the test asks
- How much runway should a raise target?
- A lender asks for the model. The one thing it must do that a budget does not is…
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