Startup financial modeling

October 1st, 2007 by Benjamin Kuo

One of the questions I often hear listening in on pitches to angels and VCs are some of the questions about assumptions behind their financial model. In particular, there’s often a question of how an entrepreneur determined the cost of employees–which are usually the biggest expense for a startup.

Guy Kawasaki has just posted some numbers from Glenn Kelman, CEO of Seattle real estate startup Redfin, on real estate costs, recruiting costs, and other expenses at the firm, which might be useful for startups building their financial plan.

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