Innovation Accounting Course

Make better decisions with a financial model that tracks progress meaningfully and predicts the most likely outcome of your corporate startup.

Benefits

This course will improve your ability to:

  • decide what project to fund
  • recognise the levers of growth for a particular business model
  • create transparency and better relationships between those that allocate and receive resources 
  • understand the most likely outcome of a startup/corporate innovation project 
  • identify and rank risky assumptions 
  • build a financial model over time, giving it the complexity it needs at each stage
  • feed new insights into your model easily 
  • measure project progress pre-/early revenue
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“The financial modelling provided by Innovation Metrics is the first major advancement in how Startup financial modelling is done since Excel was invented.”

Oliver Ciancio, Innotech Advisory

Course Overview

Financial forecasts for startups and corporate innovation initiatives are notoriously unreliable. But instead of throwing them away entirely, this course will show you how to create a financial model with high uncertainty. The result should be more accurate predictions and a way of tracking progress. 

The course consists of interactive live workshops, self-paced learning supported by videos and all necessary resources, as well as personal coaching. We invite participants to use an early-stage venture of their choice. Applying theory to a real-world example will provide immediate value beyond learning the principles. 

Actionable Metrics are the cornerstone of a good model and subsequent lead indicators for success. As a participant, you will discover how to extract the necessary metrics from any business or mission model and avoid vanity metrics. You will learn why and how to express each variable within a confidence interval before enabling a Monte Carlo Simulation. This results in the best possible prediction for your model. Lastly, we will see how the analysis can help with a range of decision making and what to do next. 

The approach, different from traditional financial modelling, identifies a venture’s key risks, levers of growth, and potential more objectively.

Innovation Accounting adds to the available toolset. Everything is evolving, as is accounting, and there is a better approach to analyse the real value potential and risk of your venture – whether it’s a startup or corporate innovation project.

We have developed this course unique to the Asia Pacific Region together with our U.S.-based partner Kromatic. It will allow you to embed Innovation Accounting practices and toolsets in your team and organisation.

Why a different approach?

The vast majority of startups and innovation projects have historically not delivered what was initially promised. Many organisations have and will continue to lose money, or have not had the desired impact with their innovation projects. Accounting and the way we do financial modelling plays a huge role in this. 

Traditional financial modelling aims to calculate things like Return on Investment (ROI), Net Present Value (NPV), and so on, many years into the future. For innovation projects, these calculations are very inaccurate as they are built on layers of data-poor assumptions. 

To be fair, facts are hard to come by as innovation projects and startups are by definition doing something that is new. Therefore, conventional accounting has very little historical data as it is familiar with handling well. Everybody who has allocated or asked for resources for high-risk ventures knows this. The risk is often clear enough but managed in a way that can introduce even more risk. 

High-discount rates for future cash flow is one of these examples. While intended to mitigate risk, it sets a higher bar for startups or corporate innovation projects. Any experienced person driving an uncertain venture is familiar with this process. In an attempt to make sure resources can still be secured, these in/entrepreneurs know that they have to present higher predictions than initially calculated. This makes it less likely to achieve a certain target and all too often uses even more resources. It is one example of how applying well-trusted tools in an environment of high uncertainty is not helpful — and even counterproductive — for everyone involved. 

Innovation Accounting is designed to fill the gap where standard accounting falls short.

Learn more about the course 

For more information on the course, please feel free to request more information.

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