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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 ModelCap Table & Exit WaterfallVenture Capital ModelFund Economics ToolVenture Valuation ToolSaaS Forecasting ToolEcommerce Forecasting ToolUnit Economics ToolRunway 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.
- All cells and formulas are unlocked — there are no macros.
- Many cells have notes explaining what they do. Read them before changing anything.

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

I am working on the Hemrock Standard Financial Model, a 72-month (6-year) monthly financial model for startups. 19 sheets. Time-series columns run from AA (prior period) through CU (month 72).

SHEET MAP:
- Get Started (B1:G154): Central assumptions hub. ALL key inputs live here. Every other sheet references this.
- Revenues (B1:CU1174): Prebuilt revenue engine. 1,174 rows. Contains growth cohorts, conversion, retention cohorts, revenue recognition, MRR metrics. Duplicated for Segment 1 (R20-R691) and Segment 2 (R693-R1172).
- Forecast (B1:CU689): Main forecast engine. Driver system for expenses. Contains burn/runway calcs (R309-R387), revenue recognition (R389-R405), depreciation (R407-R429), debt repayment (R431-R586), taxes (R593-R611), inventory (R613-R639), MRR/ARR metrics (R651-R674), and valuation (R676-R688).
- Hiring Plan (B1:CU58): Per-role salary forecasting. Same driver system as Forecast.
- Statements (B1:CU121): Auto-generated. Income Statement (R11-R40), Balance Sheet (R43-R88), Cash Flows (R90-R121). DO NOT EDIT.
- Summary: Annual rollup. DO NOT EDIT.
- Key Metrics: SaaS KPIs (ARR waterfall, Magic Number, Rule of 40, LTV:CAC). DO NOT EDIT.
- Unit Economics (B1:BA1001): Per-unit LTV, CAC, payback. Has its own inputs at D7-D47.
- Budget: Forecast vs Actuals variance. DO NOT EDIT (except actuals input on Forecast R165-R228).
- Breakdown: Segment-level P&L. DO NOT EDIT.
- Sources & Uses: Funding deployment summary.

GET STARTED — KEY INPUT CELLS:
- D9: Company Name
- D10: Base Timescale (dropdown: monthly/quarterly/annually)
- D11: # of periods (default 72)
- D12: Date of first period
- D22: Revenue model type (dropdown: recurring, ecommerce, marketplace, advertising, financial services, top down, not applicable)
- D26: New Growth Units in first month (#)
- D28: Initial growth rate (%)
- D29: Growth rate deceleration (%)
- D31: Viral coefficient (K)
- D40: Conversion rate (%)
- D44-E44: Segment names
- D45-E45: % converting to each segment
- D46-E46: Churn rate (%)
- D47-E47: Churn period (months)
- D54-E54: Avg Revenue per Revenue Unit ($)
- D55-E55: Billing period (months)
- D76: Cash on hand beginning ($), C76: Currency symbol
- D79: Use auto revenue recognition (dropdown)
- D93: Depreciation months
- D106: Corporate tax rate
- D120: WACC/NPV discount rate
- D131-D142: Monthly seasonality (Jan-Dec)

FORECAST — DRIVER SYSTEM (per row, columns K-X):
- K: Initial Value
- L: Starts in period #
- M: Repeats every N months (1=monthly, 12=annually)
- N: Driver type dropdown ('...', '% of', '# per', '% change', '# change')
- O: Changes every N months
- P: Changing by (the rate)
- Q: Using Driver (references another row's label)
- R: Max N months
- S: Max value
- U-X: Boolean flags (Seasonality, Event, Custom, Escalation)

## Cross-Sheet Flow:
Get Started → Revenues (growth, conversion, churn, pricing) → Forecast R25-R45 (metrics, revenue) → Statements → Summary
Hiring Plan → Forecast R50-R59 (salaries) → Statements
Forecast R165-R228 (actuals) merges with forecast at R231-R294 → Statements

CRITICAL RULES:
1. Never edit Statements, Summary, Key Metrics, Breakdown, or Key Reports — all formula.
2. Revenue showing zero? Check D22 (revenue model type) and D26-D29 (growth inputs) on Get Started first.
3. Adding expenses: use TBD rows R72-R95 on Forecast. Set the label in col B, category in col D (dropdown: R&D, Sales, G&A, Misc SG&A, Cost of Sales), then configure drivers in cols K-P.
4. Adding hires: use TBD rows R26-R55 on Hiring Plan. Set role name, category, salary in col K.
5. Seasonality: set monthly adjustments in D131-D142 on Get Started, then enable per-row in col U on Forecast.
6. The model supports two revenue segments. Configure segment names at D44-E44, splits at D45-E45, and independent churn/pricing per segment.