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Venture Funding Gap

Compare an explicit funding requirement with secured funding in the same currency.

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Description

Separate a supplied venture funding shortfall from a surplus.

Venture calculations depend on funding scope, fee bases, repayment terms, equity conventions and reporting periods. A post-money investor fraction differs from a pre-money valuation ratio, while constant-burn runway is conditional on a positive burn assumption. Interview consent and reported hypothesis support remain source-record assertions rather than verified evidence.

Separate a supplied venture funding shortfall from a surplus.

When to use this tool

Use Venture Funding Gap when you already have requiredFunding, securedFunding and need to separate a supplied venture funding shortfall from a surplus.

How to use the tool and how it works

  1. Enter requiredFunding, securedFunding. Use the units and conventions below.
  2. Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
  3. Read shortfall, surplus. Use the output convention below.

Require requiredFunding and securedFunding>=0; return max(0,required-secured) and max(0,secured-required).1

Input fieldMeaning and unitsAccepted input
requiredFundingRequired FundingRequired. Finite number; minimum 0.
securedFundingSecured FundingRequired. Finite number; minimum 0.
Output fieldInterpretationReturned shape
shortfallShortfallRequired. Finite number.
surplusSurplusRequired. Finite number.
json
{
  "input": {
    "requiredFunding": 120000,
    "securedFunding": 85000
  },
  "output": {
    "shortfall": 35000,
    "surplus": 0
  }
}

Limitations and assumptions

  • Only one side is positive. Funding scope, timing, restrictions and actual commitments are not verified.
  • Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
  • Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.

Alternative or Complementary methods

Reconcile the actual cash-flow forecast, financing agreement, cap table and experiment records for a venture decision. Use the full vesting and funding terms and inspect evidence quality; one balance, status label or supplied fraction does not establish feasibility, ownership or customer demand.

References

  1. Calculation and input contract: entrepreneurship-studies/venture-funding-gap — tool.io

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