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Appendix B - Seed Accelerator Programme Financial Model

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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1K views4 pages

Appendix B - Seed Accelerator Programme Financial Model

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

Uploaded by

Shumba Mutumwa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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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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