Financially modeling a Continuous Organisation


#1

If Continuous Organizations are to succeed, they need to be easily modeled financially. Entrepreneurs need to be able to establish some kind of financial projections and investors need to be able to simulate their ROI.

You will find here my 1st attempt at financially modeling a Continuous Organization.

image


#2

This is looking great!
I think it would be interesting to offer a simplify view with the inputs:

  1. Expected funding in year 1, year 2, year 3
  2. Expected revenues in year 1, year 2, year 3
  3. General parameters: buying curve’s slope, fractions of revenues and investors
  4. Initial tokens for founders

From this point, the view would offer the curves of:

  1. tokens buy/sell price at any time as in your graph
  2. the % of tokens owned by the founders and by the CO over time. This last curve might be particularly interesting to derive a fine choice of the buying curve’s slope.

#3

I am not sure I get what you meant here. Isn’t it already the case? The only inputs required in the spreadsheet are:
image
and then (on the 2nd tab)

Granted, the investments & revenues projections are not yearly over 3 years but monthly over 10 years. However, I think than given the continuity aspect of CO, inputing revenues & investments on a yearly basis would not make much sense because depending on when in the year you invested, your ROI might differ a lot.

The only thing missing as you said is a simulation of the % owned by the founders, CO, investors over time. Formula wise, it’s a more tricky one but I’ll get it done :wink:


#4

Hi Thibauld,

Really like the work you have done. I’m having some trouble with the maths mentioned in the white paper for calculating the increase in (s) when new funds are received via revenues / dividends:

What are the inputs used to calculate (s) [for example (“2d”) and (“a”)]?

Also is (I) always constant?

Many thanks,
Drew


#5

Hi Drew,

Thanks for asking!
Did you look at the annex of the whitepaper? Here is the full maths to calculate the increase of s:

You will find this image:

So to answer you question:

  • ‘d’ is the amount received by the DAT
  • ‘a’ is the number of tokens issued “before” ‘d’ is received

Does it answer your question? Let me know if I can be more helpful!