Company

Sequence allows high volume transactional businesses to move programmatically move money, bringing the finance team into the modern age of FinOps.

<aside> ➕ You can read more about Sequence and the world of FinOps here.

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Role

<aside> 🧑🏻 The Founder's Associate acts as a right hand person to the CEO. That means the role mirrors the activities and intensity of the CEO.

This involves constantly picking up new skills and applying them to unique problems to come up with novel solutions. The task below aims to reflect this.

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Problem

At Sequence, we need to build a financial model to better understand our revenue projections.

Task

Causal is a new platform that simplifies the process of building financial models.

Your task is to:

  1. Sign up to Causal and become familiar with its basic functionality
  2. Build a financial model for Sequence in Causal
  3. Write a one-pager summarising your work, outlining why you made the decisions you made and commenting on how it turned out.

Assumptions

  1. Transaction fees on payment volume:
    1. Small customers: 0.1% of payouts, 0.4% of collections
    2. Medium customers: 0.05% of payouts, 0.3% of collections
    3. Large Customers: 0.01% of payouts, 0.2% of collections
  2. Annual customer volumes:
    1. A small customer does approximately $20m of collections and/or $20m of payouts
    2. A medium customer does approximately $40m of collections and/or $40m of payouts
    3. A large customer does approximately $100m of collections and/or $100m of payouts
  3. Service mix
    1. 50% of our customers use us for both collections and payouts, and 50% on just one service
  4. Number of customers
    1. We target having 10 paying customers by end of Q1 2022 and 200 paying customers by end of 2022.
  5. Financial control centre
    1. In addition to the payments service, Sequence will start to build a library of finance automation apps.
    2. Assume we launch 2 apps in mid 2022 and each app is adopted by 50% of our customers by the end of 2022. Pricing per app:
      1. Small customer: $150pm
      2. Medium customer: $400pm
      3. Large customer: $1000pm