The client, currently operating in B2C segment, wanted the TresVista team to prepare a three-statement operational model based on which the client would raise their second round of funding. The client also planned to expand into different business segments – such as B2B segment, subscription-based segment, events/workshop-based segment, etc., for which the TresVista team was asked to suggest new revenue opportunities and identify the revenue and growth drivers of the prospective business segments.
To create an operational model and list down the revenue drivers for the new business segments the client wanted to expand into.
The TresVista team followed the following process:
The major hurdles faced by the TresVista team were:
The team overcame these hurdles by leveraging calls to collate all the relevant information from the client to understand their business model better and provide rational assumptions.
The team provided toggles for selecting the valuation approach, currency, units and scenario assumptions. TresVista team also created a cap-table, providing information regarding pre and post investment ownership stake and value of the investors. The sources and uses section created helped the investor to understand and decide on how the invested funds were going to be used for capital expenditures, marketing costs, etc. The geographical breakdown was also provided that enabled the client to understand how different markets are performing and helped them analyze their business better.