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  • Appendix B - Seed Accelerator Programme Financial Model

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    Shumba Mutumwa
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    This document contains two sample seed accelerator financial models. The first model shows that with $400,000 in total funding, a 5% chance of a large exit worth $100 million, 20% chance of a good exit worth $10 million, 25% chance of getting their money back, and 50% chance of a loss, the expected total proceeds would be $1,400,000, resulting in a 3.5x return and 13.35% IRR over 10 years. The second model shows IRR scenarios for 5 exit cases, ranging from a quick $550,000 exit with a 3.5x return and 13.35% IRR, to a massive $1 billion exit with a 25

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    Appendix B- Seed Accelerator Programme Financial Model

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    This document contains two sample seed accelerator financial models. The first model shows that with $400,000 in total funding, a 5% chance of a large exit worth $100 million, 20% chance of a good exit worth $10 million, 25% chance of getting their money back, and 50% chance of a loss, the expected total proceeds would be $1,400,000, resulting in a 3.5x return and 13.35% IRR over 10 years. The second model shows IRR scenarios for 5 exit cases, ranging from a quick $550,000 exit with a 3.5x return and 13.35% IRR, to a massive $1 billion exit with a 25

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    © All Rights Reserved
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    762 views4 pages

    Appendix B - Seed Accelerator Programme Financial Model

    Uploaded by

    Shumba Mutumwa
    This document contains two sample seed accelerator financial models. The first model shows that with $400,000 in total funding, a 5% chance of a large exit worth $100 million, 20% chance of a good exit worth $10 million, 25% chance of getting their money back, and 50% chance of a loss, the expected total proceeds would be $1,400,000, resulting in a 3.5x return and 13.35% IRR over 10 years. The second model shows IRR scenarios for 5 exit cases, ranging from a quick $550,000 exit with a 3.5x return and 13.35% IRR, to a massive $1 billion exit with a 25

    Copyright:

    © All Rights Reserved
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    of 4

    Appendix B: Seed Accelerator Programme Financial Model - Overall

    Sample Seed Accelerator Financial


    Model
    Average Investment
    Average Equity
    Number of Deals
    Post-money Valuation
    Total Funding Required

    $20,000
    6%
    20
    $333,333
    $400,000

    Large Exit %
    Good Exit %
    Money back %
    Losers %

    5%
    20%
    25%
    50%

    Invested
    Total Proceeds

    $400,000
    $1,400,000

    Return
    10-year return IRR

    Accelerator Share at Exit Value at Exit


    Accelerator Share Total Return
    0.50%
    $100,000,000
    $500,000
    $500,000
    2.00%
    $10,000,000
    $200,000
    $800,000
    4.00%
    $500,000
    $20,000
    $100,000
    $0
    $0
    $0

    3.50
    13.35%

    Appendix B: Seed Accelerator Programme Financial Model - IRRs


    Fund at 10 years

    Fund at 7 years

    Value at exit
    Pct held
    Multiple
    IRR
    Initial Investment

    0
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    year

    Quick Exit
    Case 1
    $550,000
    5.00%

    Good exit
    Case 2
    $10,000,000
    1.00%

    Big exit
    Omnisio Example
    Case 3
    Case 4
    $100,000,000
    $15,000,000
    0.50%
    6.00%

    Massive exit
    Case 5
    $1,000,000,000
    0.10%

    3.5
    13.35%

    3.5
    19.60%

    1.375
    37.50%

    5
    49.53%

    25
    37.97%

    45
    4400.00%

    50
    47.88%

    -$400,000

    -$400,000

    -$20,000
    $27,500

    -$20,000

    -$20,000

    -$20,000
    $900,000

    -$20,000

    $100,000

    $1,400,000

    $1,400,000

    $500,000

    $1,000,000

    Appendix B: Seed Accelerator Programme Financial Model - IRRs

    ssive exit
    Case 5
    000,000,000
    0.10%
    50
    47.88%
    -$20,000

    $1,000,000

    Appendix B: Seed Accelerator Programme Financial Model - IRRs

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