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Do you need to get funded?
This presentation discusses why entrepreneurs cannot build a successful company alone and need to seek funding and help. It covers that entrepreneurs need time to focus on their business, customers, employees, sales and expansion. It also explains that entrepreneurs who try to do everything alone are bound to fail, and should network, outsource tasks, and plan their cash flow. The presentation then discusses the options of bootstrapping a company without funding or seeking funding, noting the pros and cons of each approach. It provides advice on where to seek funding, including from business angels, government sources, venture capital firms and private equity. The best investors are described as those who have startup experience and have some of their own money invested.
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Do you need to get funded?
- 1. The Purpose ofthis Presentation
- 2. What we’ll cover 1. Why one person cannot build a company 2. How do you know if you should seek funding? 3. From where should you seek funding? 4. How much funding should you seek?
- 3. Entrepreneurs Need Time Toconcentrate on: » Their Business » Their Customers » Their Employees » Their Sales » Their Expansion
- 4. And They NeedTime To be human 14.7.2011
- 5. Unfortunately We cannot doeverything on our own
- 6. Why? 6
- 7. And the entrepreneursthat try to do everything on their own… Are bound to fail
- 8. Advice: Network Be networkedand Get help!
- 9. Advice: Outsource Outsourcing mandatorytasks like your bookkeeping will spare you a lot of time You should only concentrate on the things that will make your company successfull
- 10. Advice: Plan yourCash-flow 13.7.2011 www.greenstep.fi 10
- 11. WHY DO YOUNEED TO PLAN YOUR CASH-FLOW? Because you will have bills to pay + And you will often have to pay them before you receive money for your sales. = A CASH-FLOW PLAN CAN SAVE YOU FROM GOING BANKRUPT
- 12. And a goodcash-flow plan 1. Will tell you if you need funding and how much 2. Is demanded by all potential investors in your company 13.7.2011 www.greenstep.fi 12
- 13. Should You Bootstrap orGet Funded?
- 14. Option 1: Bootstrap “The art of creating a company without funding” Entrepreneurs that bootstrap their way to success will have to pay all of the company’s expenses, and will have to keep a tight cost control
- 15. How do youbootstrap a startup? Concentrate on Cash Flow – Start selling from day 1. Create a liquidity plan! Make your customers fund your R&D Ask yourself, If you had to launch your product next week, what are the features that it absolutely has to have? – Then get to work and forget the rest!!! Recruit slowly Minimize your costs
- 16. Time to marketis critical, especially when bootstrapping ”If you’re not embarrassed when you ship your first version you waited too long..” Matt Mullenweg, CEO & Cofounder of Wordpress
- 17. Option 2: GetFunded What you will need: – A Strategy – A Business Plan From who? – Business Angels – Government – VC, Private Equity – For funding opportunities in Finland check www.rahoituskone.fi 17
- 18. Getting funded willnot only bring you money It is also a very good way to transfer the knowledge of the investor to you Business Angels and Venture Capitalists are often smart people who can give you good advice – And they usually spread the word of your company to their personal networks
- 19. Pro’s and Con’s Bootstrap Get Funded – You can decide – You share the risk everything on your own – More administrative – You bare the risk work – Less administrative work – Less distractions (you – Harder to grow can outsource) – Easier to grow – The investors are likely to act as mentors for your company – Fast to market – You can get fired!
- 20. What is thedifference between VC and Angel funding? Business Angels Venture Capital Firms – Invest their own money – Invest someone elses – Typical investment: money 10k-1m – Typical investment: over – Prefer to invest early in 1m the seed-stage – Prefer to invest in – Invest their passion established companies that seek exponential growth
- 21. If you realizethat you must raise capital Raise enough capital so that you can survive for the next 18-24 months Start to raise capital ahead of time – normal funding rounds will take you 4-5 months
- 22. And please havea look at all of your options before choosing one..
- 23. The best investors Have either founded or managed companies before Have some of their own money in play Can see the problem and are excited about your solution!
- 24.
- 25. And remember toEnjoy the Ride! Get Help before it is too late.. 14.7.2011 www.greenstep.fi 25
- 26. And Please Get Help before it is too late.. 12.7.2011 www.greenstep.fi 26
- 27. You cannot doeverything on your own! You must seek help: – There are 18 accounting and financial professionals working at Greenstep and they would all love to help your company become successful 14.7.2011 www.greenstep.fi 27
- 28. Br, Fredrik Teir MarketingDirector of Greenstep & Chief Editor of rahoituskone.fi +358 440 16 1288 [email protected] @rahoituskone