June 01, 2013⬢
Christoph Janz of Point Nine Capital wrote a great post on financial planning for SaaS startups. We recommend using this template as a way for startups to model their budget / costs (especially headcount) as part of discussing the use of proceeds over a 12 - 18 month period. Our Budgie app will walk you through filling it out.
Most of the companies we work with have no or very limited funding, and we are often investing in a pre-seed round. Regardless, use this tool to understand your costs - what will you be spending on, and what will your customer base be at over a one year time frame.
There are other rules of thumb. For instance, we typically want to see that founders are paying themselves a moderate salary – typically $4K - $5K per month.