Many startups struggle with the complexity and expense of financial modeling, often finding themselves tangled in cumbersome spreadsheets that are difficult to manage and understand.
Logan Burchett saw this firsthand while working at Venture First, where he noticed that clients were spending thousands on financial models they couldn't effectively use. Inspired by this inefficiency, Logan set out to create Forecastr, a company dedicated to simplifying financial forecasting for businesses. By offering an intuitive software solution paired with expert financial guidance, Forecastr aims to help startups make better decisions, impress investors, and hit their growth targets.
We asked Logan a few questions about his journey, inspirations, and predictions for the future of finance technology.
How did you become interested in financial models?
LB: Initially, I wasn’t specifically interested in financial models but was deeply interested in finance and venture capital. My journey began at the Kentucky Pension Fund, where I managed the stock portfolio for two years. I sat next to the person handling venture capital and found his work much more intriguing than mine.
Determined to enter the venture capital ecosystem, I reached out to Venture First, a startup focused on 401(k) evaluations and fractional CFO services. After speaking with the CEO, John Shumate, I joined the company. There, I began building financial models, which intersected my interests in client relationships and finance. This hands-on experience fostered my passion for financial modeling.
Financial modeling, to me, is a unique and often underutilized way to manage a business. It serves as a framework for setting and managing goals. My time at Venture First allowed me to hone my skills, understand what makes a good model, and learn the essentials of interacting with financial models.
I firmly believe that financial modeling will move away from Excel and into specialized software.
What challenges did you identify that drove you to co-found a company?
LB: At Venture First, I noticed that clients spent substantial amounts of money, often between $5,000 and $15,000, to have a financial model built. However, these models were highly complex, with extensive spreadsheets and formulas that were difficult for non-finance professionals to understand. As a result, clients either neglected the models or continued to pay us significant sums to maintain them.
Meanwhile, other business functions were becoming more streamlined and user-friendly through software solutions like QuickBooks for accounting and HubSpot for CRM. The financial modeling process seemed broken, expensive, and inefficient, prompting us to start Forecastr to address these issues.
Tell us about your team. Who’s on it, and how did you meet?
LB: We have 35 people on our team, but I'll focus on how I met my co-founder, Stephen. We met at Venture First, where Stephen was a fractional analyst. He had just come from his previous company, Fantasy Hub. We bonded over our work as financial analysts and our shared entrepreneurial spirit.
Eventually, we decided to collaborate and founded Forecastr. We also brought on two technical co-founders: Stephen Ambs, who worked with Stephen at Fantasy Hub, and Jonathan Frazier, an MIT grad and data scientist we met at a startup weekend event. This team helped us achieve our first million in annual recurring revenue.
Where do you see finance technology headed in the future?
LB: I firmly believe that financial modeling will move away from Excel and into specialized software. History shows that major business functions eventually adopt specialized software for efficiency and scalability. While finance has traditionally been slower to innovate, the trend is undeniable. At Forecastr, we aim to lead this transition by providing an integrated web app for financial modeling.
The benefits of this shift include standardization, automation, and advanced analysis through AI, which will revolutionize financial modeling and planning.
What does success look like for Forecastr in the short and long term?
LB: In the short to mid-term, success means doubling our annual recurring revenue year-over-year. We aim to reach $5 million in annual recurring revenue by the end of this year and become profitable around that time.
Long-term success could take various forms. We might exit by selling to a strategic investor who can further develop our technology, or we might grow Forecastr into a large, profitable business and possibly take it public. Our primary goal is to build a great business, and we are open to various successful outcomes.
Find out more about Forecastr at forecastr.co. Are you a startup based in or looking to relocate to Kentucky? Keyhorse’s current quarterly investment cycle is open! Apply now.
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