In this episode, Logan Burchett, the co-founder and COO of Forecastr, recounts his unconventional career journey—from his early aspirations to become a lawyer to his current role as an entrepreneur in the finance sector. Initially focused on law, he found his true passion for economics and finance during his collegiate years, which propelled him into a role as a financial analyst and eventually led him to a pension fund. His experience at Venture First ignited a fascination with venture capital, culminating in the co-founding of Forecastr, a company set to transform financial modeling.
Logan shares insights into the future of financial modeling, forecasting a transition away from Excel and urging finance professionals to adapt to new tools and trends. Throughout their discussion, he underscores the importance of curiosity, flexibility, and lifelong learning in a rapidly changing industry.
Transcript
Anna Talerico (00:13)
Welcome back to another episode of Careers in Finance! I’m delighted to introduce Logan Burchett today, who has a fascinating career trajectory to share. Logan, thank you for joining us.
Logan Burchett (00:26)
Thank you for having me! I’m excited to be here.
Anna Talerico (00:28)
Logan is the co-founder and COO of Forecastr, and we’ll delve into that shortly. But first, let’s start with your origin story. Did you always want to pursue a career in finance, and what did you major in during your studies?
Logan Burchett (00:56)
No, the quick answer is that I didn’t always aspire to be a finance professional. Ironically, throughout my undergraduate studies and most of my youth, I envisioned a future in law, influenced by my lawyer relatives. I always found joy in analyzing arguments, so I thought law was my destined path. I attended Transylvania University in Lexington, Kentucky, focused on preparing for law school, but along the way, I took economics classes as part of the pre-law curriculum.
Those economics courses, particularly microeconomics and macroeconomics, captured my interest more than I anticipated. I found myself drawn to the subject of economics, which ultimately led me to switch my major to economics. However, I still didn’t consider finance as a career path at that point; I was simply fascinated by economics.
That changed when I began studying for the LSAT. I invested in a massive study guide, and about a month in, I discovered a lack of interest in the materials. I realized I had romanticized the legal profession, and upon delving into its realities, I felt it wasn’t for me. I realized I would find greater fulfillment closer to my newfound passion for economics and finance, which ultimately led me to pursue a career in that direction.
Anna Talerico (03:25)
I appreciate your self-awareness. Many people persist in an unhappy journey just because they’ve committed to a track. You adapted, which is commendable. After graduating with your economics degree, what did you do next?
Logan Burchett (03:58)
Interestingly, I graduated in 2013 and faced challenges finding a job. So, I opted to pursue an MBA at Xavier University, moving to Cincinnati. There, I focused on finance while simultaneously seeking work as a financial analyst.
Once I enrolled in the MBA program, I secured a financial analyst position, putting me in a unique scenario: a full-time student taking evening classes and also a full-time employee. For a year, I worked as a financial analyst at Access Financial, where my days were filled with balancing school and work, attending classes from 6 to 10 PM after a full day in the office.
Access Financial was actually a payday lending company, which posed some ethical dilemmas for me as I wasn’t comfortable with the nature of the work. Nevertheless, entering the finance field was tough, so I persevered for about a year.
Eventually, I decided to leave and explore new opportunities, leading me to the Kentucky Pension Fund, where I sought to delve into large-scale asset management. However, opportunities in the region lacked the volume typically found on Wall Street.
The pension fund managed approximately $18 billion, which provided a significant chance for me to engage in meaningful work. I really feel this was the turning point in my career where I found my stride in finance.
Anna Talerico (06:33)
That’s impressive. Let’s reflect on your MBA experience while balancing your full-time job. How applicable was what you learned in your program to your role as a financial analyst? I’ve heard conflicting things regarding the real-world relevance of MBAs.
Logan Burchett (06:59)
That’s a thought-provoking question. It would be beneficial to have some industry experience before starting an MBA program, as I approached it with the sole aim to earn a job instead of mastering my craft. I feel like I went through my MBA quite mechanically, focused solely on maintaining a good GPA.
Now, I wish I could revisit my MBA with my current experience in finance, as I’d better understand the practical implications of what I would be learning. Initial theory often felt disconnected from reality for me, as I hadn’t experienced a live finance environment when I was in the program.
So, for anyone considering an MBA right out of college, my advice is to gain a few years of experience first to grasp the field before pursuing advanced studies.
Anna Talerico (08:48)
That’s great advice. Understanding the field before theory makes perfect sense. So regarding your analyst role, did you encounter much financial modeling, or what did your daily tasks entail?
Logan Burchett (09:06)
Interestingly, my initial role did not involve much financial modeling, which ultimately contributed to my decision to leave. While Access Financial was a large, multi-billion dollar enterprise, I found myself at the very bottom of the finance hierarchy.
Most of my work involved generating standard reports and performing extensive manual data entry. While I did develop my Excel skills, I found little connection between my tasks and the company’s overarching strategies or financial statements. I mostly provided data to senior analysts who relayed that information up to the finance directors and CFO.
In retrospect, due to my inexperience, I didn’t fully grasp the impact of my role within the company.
Anna Talerico (10:12)
That’s understandable, looking back with the clarity you have now. What about your transition to the pension fund? What was that experience like?
Logan Burchett (10:47)
The transition to the pension fund was pivotal, albeit unpredictable in how things would unfold. I shifted from FP&A, which I primarily handled at Access Financial, to a focus on large-scale asset management. The fund primarily operated in public equity, letting outside managers handle investments.
While I found the work engaging, I realized my true passion lay in the responsibilities of our director of venture capital, particularly the $2 billion venture capital portfolio he managed. I began sitting in on his meetings, fascinated by the strategies and insights shared about potential investments.
This revelation led me to pursue becoming a venture capitalist myself. I didn’t fully comprehend what that entailed at the time, but the excitement of it all was evident.
However, breaking into VC in Kentucky was no easy feat, given its limited landscape for such investment opportunities. I connected with John Shoemate, who was launching a company called Venture First focused on offering CFO services and conducting 409A valuations for startups.
He offered me a position as his first analyst to help build financial models and work with early-stage companies, which propelled my career in a direction I thoroughly enjoyed.
Anna Talerico (14:14)
That’s fantastic. Returning to your time at the pension fund, can you describe your daily responsibilities?
Logan Burchett (16:04)
The role was quite varied, involving both routine tasks like analyzing return data and preparing reports as well as engaging with intelligent money managers. Our strategy primarily included replicating the S&P 500 rather than active trading.
However, the highlights were the opportunities to fly out to cities like New York and Boston to meet with fund managers handling significant assets, allowing me to interact with influential figures in finance, even as a relatively young employee.
Anna Talerico (17:56)
That’s such an eye-opening aspect of the role, gaining firsthand exposure to high-level decision makers. So, how did your work evolve at Venture First?
Logan Burchett (18:26)
At Venture First, I built my first financial model—a pivotal moment in my career. I remember creating a model for Century Health, diving deeply into understanding the business. It was an arduous process but served as a valuable learning experience.
My entry into a model-building role provided me with significant responsibility, including cash flow forecasting and advising the CEO. This transition from seemingly menial tasks to impactful contributions was incredibly fulfilling.
Anna Talerico (20:59)
That’s wonderful to hear. It seems the modeling process often leads to those transformative moments, doesn’t it? Now, how did you navigate from being an analyst to co-founding a software company?
Logan Burchett (21:31)
Reflecting on it now, my entrepreneurial journey seemed almost inevitable. During my time at Venture First, I was immersed in an entrepreneurial environment, working with startups, learning about venture capital, and discovering the intricacies of fundraising.
A crucial realization arose as I identified a pervasive issue with how financial modeling is conducted most often using Excel. This led to the realization that many startups struggled to navigate those models due to a lack of familiarity with Excel.
Recognizing that financial modeling needed a transformation akin to other business functions I noticed shifting online, I candidly discussed the potential of developing software for this purpose with my now co-founder, Steven. As it happens, he had previously developed a similar idea called Crystal Ball. We combined our ideas and committed to pursue this venture back in 2018.
Anna Talerico (24:17)
That’s incredible. Understanding a need from personal experience often creates the strongest motivation for new ventures. Could you share where Forecastr stands today regarding funding and growth?
Logan Burchett (24:42)
Sure! We’re venture-backed, having raised around $15 million to date. Our team comprises approximately 38-39 full-time employees. Our approach has been to highlight the need for software solutions in financial modeling, recognizing it’s not solely about offering a better Excel alternative but providing holistic assistance.
Currently, we are nearing $3 million in annual recurring revenue (ARR) and setting our sights on achieving profitability, which we aim for by 2025.
Anna Talerico (26:10)
That’s fantastic progress! What overarching trends do you see in the financial modeling sector, particularly with the influx of technology?
Logan Burchett (26:50)
Indeed, I’m convinced financial modeling will transition away from Excel soon. This is a natural progression in every major business function; finance will not be exempt. It’s vital for finance teams to explore and educate themselves on new tools, as advancements are occurring rapidly, transforming how we think of financial modeling.
Forecastr’s latest version mimics Excel functionality but integrates better, providing straightforward reporting tools. The shift toward software solutions is essential, and I’d urge finance professionals to familiarize themselves with innovative technology in the sector.
Anna Talerico (28:44)
Absolutely, staying curious and engaged with emerging technology is crucial for avoiding obsolescence. What final advice would you offer someone early in their finance career who may be contemplating a pivot?
Logan Burchett (29:28)
My advice would be to experiment with various roles and situations to uncover your inspirations; you may not be clear on what excites you just yet. Additionally, observe and learn from successful people within your domain. Seek mentorship opportunities and prioritize learning over financial gains in your initial journey.
Anna Talerico (30:36)
Excellent advice! This has been such an enriching conversation, Logan. I’ve been eager to learn more about your journey with Forecastr, and I’m thrilled we had this opportunity.
Logan Burchett (30:53)
I appreciate it! It’s been a pleasure to share my journey with you.
Anna Talerico (31:00)
Thank you, Logan.
