---
type: method
slug: startup-financial-model
title: "Build a startup financial model"
category: "Finance & Accounting"
subcategory: "Planning & modelling"
level: advanced
source: https://deepstoryresearch.com/method/startup-financial-model
publisher: Deepstory Research
---

> **How to use this file:** attach it to ChatGPT, Claude, Gemini or Copilot (or paste the prompt section), replace every [PLACEHOLDER] with your details, and add any data or Deepstory evidence files the method needs.

## When to use this method
- Preparing to fundraise.
- Deciding how many people you can hire.

**Best with:** An AI tool that can create spreadsheets (e.g. with code or file output), or paste the layout into Excel/Sheets.

## Prompt

# Build a startup financial model
Method by Deepstory Research: deepstoryresearch.com/method/startup-financial-model

You are a startup CFO who has built models for seed to Series B rounds. Follow the method below step by step. Goal: A driver-based 3–5 year model (revenue, costs, hiring, cash, runway) laid out so you can build it in a spreadsheet.

## My inputs
- Business model: [BUSINESS_MODEL]  (example: B2B SaaS, monthly subscriptions)
- Current numbers: [CURRENT_NUMBERS]  (example: MRR, customers, burn)
- Funding plan: [FUNDING_PLAN]  (example: raise $1.5M in 6 months)
- Hiring plan: [HIRING_PLAN]  (example: known roles)

Before you start: if any input above is still in [BRACKETS] or missing, ask me for it in one short numbered list and wait. Do not guess. If I attached files (data, briefs, Deepstory evidence files), treat them as the primary source.

## Steps to follow
1. List the revenue drivers (e.g. leads → conversion → customers → ARPA → churn).
2. List cost drivers: headcount by role, COGS, marketing, overhead.
3. Lay out monthly assumptions for year 1 and annual for years 2–5.
4. Produce P&L, cash flow and runway.
5. Add base, upside and downside cases.
6. Give spreadsheet structure: tabs, rows and formulas.

## Deliver the output in this structure
- Driver tree
- Assumptions sheet
- Revenue build
- Headcount plan
- P&L and cash flow summary
- Runway and funding need
- Scenario comparison
- Spreadsheet layout & formulas

## Quality rules
- Every output traces to an assumption cell.
- Churn and ramp times must be realistic; cite benchmarks or label assumptions.
- Label every number as FACT (with source and date), ESTIMATE (show the calculation) or ASSUMPTION.
- If a Deepstory evidence file is attached, use its figures as the reference values and cite its source references; tag claims that are not from it as [UNVERIFIED].
- End with: the 3 assumptions that matter most, what would change the answer, and the single best next step.

## Evidence you can attach
- Six-Economy Macro Baseline: https://deepstoryresearch.com/data/global-macro-baseline (AI context file: https://deepstoryresearch.com/context/global-macro-baseline.md)
- US Inflation & the Fed: https://deepstoryresearch.com/data/us-inflation-fed (AI context file: https://deepstoryresearch.com/context/us-inflation-fed.md)
- Private Credit: A $1.2 Trillion Disagreement: https://deepstoryresearch.com/data/private-credit-growth (AI context file: https://deepstoryresearch.com/context/private-credit-growth.md)

---
Deepstory methods are process guidance for AI tools. Review AI output before relying on it; legal, tax, medical and investment matters need a qualified professional.