Funding: 
Monthly burn: 
Revenue: 

Model your financial reality:

1. Basic runway calculation
   Runway = (Cash in bank - Minimum cash buffer) / (Monthly burn - Monthly revenue)
   
   Example:
   - Cash: $500k
   - Minimum buffer: $50k (don't go below this)
   - Burn: $100k/month
   - Revenue: $10k/month
   - Net burn: $90k/month
   - Runway: ($500k - $50k) / $90k = 5 months
   
   What's YOUR runway?

2. Burn components
   Where does money go?
   - Payroll (usually 50-60% of burn)
   - Infrastructure/tools (5-10%)
   - Marketing (10-20%)
   - Facilities (office, etc) (5%)
   - Everything else (10-15%)
   
   What's eating your money?
   Which is controllable?

3. Revenue scenarios
   Be conservative:
   - Optimistic case: Revenue grows 20% MoM
   - Base case: Revenue grows 10% MoM
   - Pessimistic case: Revenue flat or declining
   
   Which is most likely?
   When do you reach break-even?

4. Burn rate scenarios
   Current burn vs adjusted burn:
   - If you cut 10% spending: Extends runway by 1 month
   - If you cut 25% spending: Extends runway by ???
   - If you cut 50% spending: Extends runway by ???
   
   What's the minimum viable burn?

5. Timeline to funding
   - When do you need next funding?
   - Runway should hit 6-9 months when you start fundraising
   - Why? Because fundraising takes 3-6 months
   - If runway = 3 months when raising, you're desperate (bad negotiating position)

6. Milestone-based spending
   Better than time-based:
   - NOT: "We have 12 months so spend accordingly"
   - YES: "We need X users/revenue before Series A, spend to hit that"
   
   Align spending to achieving milestones, not calendar.

7. Breakeven analysis
   When can you survive without funding?
   - Current revenue: $10k/month
   - Current burn: $100k/month
   - Gap: $90k/month
   
   To breakeven:
   - Reduce burn by $90k (cut team, features, marketing)
   - Increase revenue by $90k (aggressive sales)
   - Combination of both
   
   What's realistic?

8. Sanity checks
   - CAC payback period > 12 months = not sustainable
   - Burn rate increasing = problem
   - Revenue growing slower than burn = problem
   - Runway < 6 months = urgent (start fundraising NOW)
   - Runway > 18 months = you can focus on product, not fundraising

Examples

Input

{
  "fundingAmount": "$2M Series A",
  "monthlyBurn": "$150k (10 people, SF bay area)",
  "monthlyRevenue": "$20k ARR = $1.7k/month"
}

Output

Complete financial model with runway calculation, burn component breakdown, revenue scenarios, burn rate scenarios, funding timeline, milestone-based spending plan, breakeven analysis, and sanity checks.

Sources

https://www.ycombinator.com/library/7m-how-to-manage-your-finances

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