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# Edit with AI

Start with a proven structure, edit with AI. Paste the primers into Claude for Excel, ChatGPT, or any AI tool so it understands how Hemrock models are built before it touches a cell. Pick a task, fill in the brackets, and verify the output.

## Pick a template

Everything below adapts to the template you choose. Link-safe via `?template=`.

Standard Financial Model  Cap Table & Exit Waterfall  Venture Capital Model  Fund Economics Tool  Venture Valuation Tool  SaaS Forecasting Tool  Ecommerce Forecasting Tool  Unit Economics Tool  Runway Tool

## Universal primer

Paste this first. It tells the AI how every Hemrock model is structured, what inputs look like, and the ground rules for making changes.

### Universal context primer

I am working on a Hemrock (formerly Foresight) financial model template created by Taylor Davidson (hemrock.com, formerly foresight.is). Before we start, here is how these models are structured:

**FORMATTING CONVENTIONS:**
- Blue font with light grey background = an input cell (assumption you can change). Only edit these.
- Black font = a formula or calculation. Do not modify these unless you fully understand the formula and its downstream effects.

**SHEET STRUCTURE:**
- README / License / Disclaimer: Informational only. Safe to ignore or hide.
- Get Started: Top-level model inputs and settings. Start here.
- Forecast: Detailed assumptions and inputs. A hybrid inputs-and-calculations sheet — treat blue cells as inputs, black cells as hands-off.
- Revenues: Revenue model calculations (Standard Model). Driven by inputs on Get Started and Forecast.
- Statements: Consolidated financial statements (income statement, balance sheet, cash flow).
- Summary / Key Reports / Breakdown / Budget / Sources and Uses: Presentation and analysis sheets. Output only — do not manually edit.
- Changelog: Version history. Do not delete.

**CORE PRINCIPLES:**
- Inputs, calculations, and presentations are intentionally separated. Never hard-code values into calculation or presentation sheets.
- All current assumptions are illustrative only — they are not market data or standards.
- The model is designed to be used iteratively, not as a static output.
- When in doubt, ask which cells are inputs before suggesting changes.

**BEFORE MAKING ANY CHANGES:**
1. Confirm with me which cells are blue (inputs) vs. black (calculations).
2. Tell me what downstream effects your proposed change will have.
3. Do not hard-code values into formula cells.
4. If a change requires modifying a formula, explain exactly what you are changing and why.

## Template primer

Paste this after the universal primer. It maps the specific sheets, inputs, and rules for the Venture Capital Model. If you haven't pasted the universal primer yet, use Copy both to paste them together.

### Venture Capital Model, template primer

I am working on the Hemrock Venture Capital Model, a quarterly fund forecast with 16 sheets, 3 built-in scenarios, fund statements, and management company modeling.

**SHEET MAP:**
- Get Started (B1:L250): Core fund assumptions, investment strategy, portfolio construction, return expectations, fund performance. ALL key inputs.
- Forecast: Quarterly cash flows over fund life (46+ quarters). Capital calls, fees, investments, exits, distributions, NAV, J-curve.
- Statements: Fund-level Statement of Operations, Balance Sheet, Cash Flows. DO NOT EDIT.
- Management Company: GP entity P&L (fee revenue, expenses, carry income).
- Scenarios: Side-by-side comparison of 3 scenarios with sensitivity inputs.

### GET STARTED — CAPITAL AND FUND ASSUMPTIONS (R5-R20):
| Row | Label | Type | Default | Notes |
|-----|-------|------|---------|-------|
| R9/D9 | Total Committed Capital | INPUT ($) | $25M | All committed assumed called |
| R10/D10 | GP Commit % | INPUT (%) | 2% | Treated as LP interest for carry |
| R11/D11 | Organizational Expenses | INPUT ($) | $100k | One-time, first quarter |
| R12/D12 | Operational Expenses (annual) | INPUT ($) | $75k | In addition to management fees |
| R13/D13 | Management Fees % per year | INPUT (%) | 2% | Based on committed or called capital |
| R14/D14 | Carry % | INPUT (%) | 20% | |
| R15/D15 | Preferred Return | INPUT (%) | 0% | Uncommon for US venture |
| R16/D16 | GP Catchup % | INPUT (%) | 0% | Only if preferred return |
| R17/D17 | New Investment Period (quarters) | INPUT (#) | 16 (4 years) | |
| R18/D18 | Management Fees period (quarters) | INPUT (#) | 40 (10 years) | |
| R19/D19 | Fund Operations period (quarters) | INPUT (#) | 46 (11.5 years) | |
| R20/D20 | Extension Period (quarters) | INPUT (#) | 6 (1.5 years) | |

### GET STARTED — RECYCLING (R23-R31):
| Row | Label | Type | Default |
|-----|-------|------|---------|
| R27/D27 | Target recycling % | INPUT (%) | 0% |
| R28/D28 | Based on (committed/mgmt fees) | DROPDOWN | "committed capital" |
| R29/D29 | From exits ≤ N quarters post-invest | INPUT (#) | 24 |
| R30/D30 | Up to (invested capital/proceeds) | DROPDOWN | "invested capital" |
| R31/D31 | Recycled through quarter | INPUT (#) | 16 |

### GET STARTED — INVESTMENT STRATEGY (R34-R70):
This section models multi-stage graduation, not just return tiers.

| Row | Label | Type |
|-----|-------|------|
| R37 | Column headers: New Investment, 2nd Round, 3rd, 4th, 5th, 6th, Exit | |
| R39/D39-I39 | % Allocation to entry at each stage | INPUT (%) | Default: 100% to New |
| R42/D42-I42 | Average invested per new investment | INPUT ($) | $750k |
| R44/D44-I44 | % Graduate to next round | INPUT (%) | 30%, 50%, 50%, 60%, 70%, 0% |
| R68/D68-I68 | Average Initial Investment | INPUT ($) | $750k |
| R69/D69-I69 | Post-money Valuation per round | INPUT ($) | $6M, $18M, $54M, $162M, $324M, $648M |
| R70/D70-I70 | Dilution from round | INPUT (%) | 0%, 20%, 20%, 20%, 20%, 20% |

### Portfolio Construction (R73-R95):
| Row | Label | Type |
|-----|-------|------|
| R76-R95 | Per-round: check size, reserves, follow-on amounts | FORMULA from Strategy section |
| R77 | # of Checks (new + follow) | FORMULA |
| R78 | Total Capital Deployed | FORMULA |

### Fund Performance (R133-R170) — FORMULA
| Row | Metric |
|-----|--------|
| R137 | Called Capital (LP + GP) |
| R138 | Fund Expenses |
| R139 | Management Fees |
| R140 | Recycled Capital |
| R141 | Invested Capital |
| R142 | Proceeds |
| R143 | Carried Interest (with preferred return waterfall) |
| R144 | Distributions (Total / LP / GP) |
| R146 | Gross Multiple |
| R147 | Net Multiple (Total / LP / GP) |
| R148 | Gross IRR |
| R149 | Net IRR (Total / LP / GP) |

### Fund Details (R155-R250):
Extended calculations: per-investment detail, capital deployment pacing, exit timing, carry waterfall mechanics.

## Forecast — Quarterly Cash Flows
Quarterly time-series (up to 46+ quarters):
- Capital calls per quarter
- Management fees per quarter
- Fund expenses per quarter
- Investment pacing (new + follow-on)
- Exit proceeds per quarter (based on holding periods from Strategy)
- Distributions per quarter
- NAV per quarter
- J-curve: cumulative IRR per quarter

## Statements
Fund-level financial statements:
- Statement of Operations
- Balance Sheet (Assets = Investments at cost + Unrealized gains; Liabilities = Carried interest payable)
- Statement of Cash Flows

## Management Company
P&L for the management entity:
- Revenue: Management fees
- Expenses: Operations, organizational
- GP commit obligations
- Carried interest income
- Net income to GP

## Scenarios
3 scenarios (base + 2 alternates), each with independent Get Started + Forecast sheets. Scenarios sheet shows side-by-side comparison with sensitivity inputs.