Detractors of this practice often argue that, since projections are rarely met, developing a financial model is a waste of time. This logic, while understandable, ignores the true value of a well-built model, even at very early stages and without income.
At Intelectium, we maintain that a well-designed financial model is not a crystal ball, but a tool for in-depth knowledge of the business. It serves to simulate different scenarios and anticipate strategic decisions, even when there are no sales. Through these simulations, we can better understand the impact of the sector's gross margins on cash flow, expected capital efficiency or financial need under different growth rates. In this way, the model becomes a guide for making informed decisions, planning the use of capital and avoiding costly errors.
The main difference between the financial models developed by Intelectium
One of the great advantages of our Intelectium models is the depth with which we approach the generation of future revenues. For B2C businesses, we start from the analysis of investments in digital marketing, precisely identifying the growth levers: CPA, conversion per channel, incremental cost per volume, retention and LTV. For example, we know that a startup that launches a health app may experience an initial CPA of 15€, but as it scales, that CPA could rise to 35€. This knowledge, the result of our experience with hundreds of startups, allows us to project realistic and sustainable scenarios, helping the entrepreneur to establish attainable KPIs.
In B2B models, we start from the sizing and efficiency of the sales team: number of people hired, expected ramp-up, sales cycle, conversion and average ticket. For example, for a SaaS startup that sells to medium-sized companies, we know that an average SDR can generate between 6 and 10 qualified leads per month, with a conversion rate of 15-20% and a sales cycle of three to five months. These figures, combined with sector experience, allow us to build sales scenarios adjusted to reality.
The sectoral knowledge we apply comes from years of working with companies in sectors such as fintech, edtech, digital health, marketplaces, SaaS and e-commerce. By working with aggregated data, we fully respect the confidentiality of our clients and at the same time we extract patterns that allow us to model with a precision far exceeding the market standard. This gives us a competitive advantage both in the construction of models and in the financial planning that follows those models.
Once the model is built, its value is amplified by allowing simulations of growth scenarios: conservative, basic and aggressive. This, in turn, makes it easier to estimate the range of funding needs and makes it possible to optimally structure investment rounds. For example, in the base scenario, a seed round of €500,000 may be projected, while in an aggressive scenario, €1M may be required to capture a larger market share. In addition, our models make it possible to determine how much of this funding could be covered with public debt instruments such as ENISA, ICF or CDTI, optimizing the capital structure and reducing the dilution of the founders.
From a technical financial point of view, our models are highly valued by venture capital funds, banks and public bodies, because they integrate the income statement, balance sheet and cash flow in a coherent way. This integration makes it possible to accurately simulate the impact of any decision (a contract, a price increase, a change in payment policy) on the company's liquidity and solvency. An entrepreneur may know, for example, how early hiring affects their runway or what impact the delay in collecting a large bill will have. This ability to anticipate is key to avoiding unforeseen events and making the right decisions.
Many models that come to our hands from other consulting firms or developed internally by the founding teams are incomplete or static. They are usually limited to a simplified income statement, without integration with cashflow or balance sheet. This creates a false sense of control and can lead to serious planning errors. At Intelectium, on the contrary, we ensure that each model is a living, coherent and updatable tool, capable of serving both to attract investment and to manage the company's daily life.
Finally, our financial models are also designed to be understood by founders. We do not seek to dazzle with unnecessary technicalities, but rather to facilitate reading, analysis and decision-making. Our clients know clearly what their current runway is, what payments they must face in the short term, what the monthly burn is and what impact each decision will have on their future financial situation. This clarity is critical to taking financial control of the project and leading with confidence.
In short, the financial model is not a prediction of the future. It's a tool to build it.
