Finance workshop


      The top 5 reasons why an investor will NOT
                 invest in your startup


                  Martin van Wunnik
                    Xavier Corman
                  Vladimir Blagojević
19/09/2012       Xavier Corman | Martin | Martin van|Wunnik Blagojević
                          Xavier Corman van Wunnik Vladimir              1
Who are we ?
             Martin van Wunnik




             Xavier Corman




             Vladimir Blagojević



19/09/2012                   Xavier Corman | Martin | Martin van|Wunnik Blagojević
                                      Xavier Corman van Wunnik Vladimir              2
This presentation is available for free:


               http://www.slideshare.net/xaviercorman

              http://www.slideshare.net/FinanceCoach24

             http://www.slideshare.net/VladimirBlagojevic




19/09/2012          Xavier Corman | Martin | Martin van|Wunnik Blagojević
                             Xavier Corman van Wunnik Vladimir              3
http://www.ideaowl.com/blog/2011/06/microconf-2011-3-surprises-
                                           and-learnings-from-best-conference-ever/

19/09/2012   Xavier Corman | Martin | Martin van|Wunnik Blagojević
                      Xavier Corman van Wunnik Vladimir                                        4
Investor’s motivations

                 1.     Team
                 2.     Business model
                 3.     Scalability
                 4.     ROI
                 5.     Exit strategy




19/09/2012      Xavier Corman | Martin | Martin van|Wunnik Blagojević
                         Xavier Corman van Wunnik Vladimir              5
Team
             Marketing                                 Sales

                                  CEO

             Technical                       Operational


19/09/2012      Xavier Corman | Martin | Martin van|Wunnik Blagojević
                         Xavier Corman van Wunnik Vladimir              6
Business model




19/09/2012   Xavier Corman | Martin | Martin van|Wunnik Blagojević
                      Xavier Corman van Wunnik Vladimir              7
Business model
“How will you make money ?”


Tech startup: Your product is only 1/3 !

Freemium (« build a community »)

Burn rate, cash crunch, « valley of death »

 19/09/2012     Xavier Corman | Martin | Martin van|Wunnik Blagojević
                         Xavier Corman van Wunnik Vladimir              8
Required Cash-Flow




19/09/2012     Xavier Corman | Martin | Martin van|Wunnik Blagojević
                        Xavier Corman van Wunnik Vladimir              9
A Scalable Business
Checklist




@VladBlagi
10steps2.com                                                           Get your innovations funded


  19/09/2012   Xavier Corman | Martin | Martin van|Wunnik Blagojević
                        Xavier Corman van Wunnik Vladimir                                            10
WHAT ARE YOU BUILDING?



19/09/2012   Xavier Corman | Martin | Martin van|Wunnik Blagojević
                      Xavier Corman van Wunnik Vladimir                    11
                                                                     10steps2.com
19/09/2012   Xavier Corman | Martin | Martin van|Wunnik Blagojević
                      Xavier Corman van Wunnik Vladimir              12
WHAT IS YOUR INVESTOR THINKING
              ABOUT?




19/09/2012   Xavier Corman | Martin | Martin van|Wunnik Blagojević
                      Xavier Corman van Wunnik Vladimir              13
YOU ARE BUILDING A MONEY
                 MAKING MACHINE




19/09/2012        Xavier Corman | Martin | Martin van|Wunnik Blagojević
                           Xavier Corman van Wunnik Vladimir              14
Who is
                                 buying?




                                                                        Why are you
How will you
                                                                       worth buying?
make money?
                                                                        Why are you
                                                                           different?




                               How will you
 19/09/2012
                                    reach
               Xavier Corman | Martin | Martin van|Wunnik Blagojević
                        Xavier Corman van Wunnik Vladimir                        15
                                customers?
AND IT’S GOT TO BE SCALABLE




19/09/2012         Xavier Corman | Martin | Martin van|Wunnik Blagojević
                            Xavier Corman van Wunnik Vladimir              16
Easy to deliver                        Big, growing
                                                    market of buyers
                 Easy to sell                       Unfair advantage




             Repeatable                                     Scalable
              business                                   growth engine




19/09/2012      Xavier Corman | Martin | Martin van|Wunnik Blagojević
                         Xavier Corman van Wunnik Vladimir               17
10 STEPS TO A SCALABLE BUSINESS


             A free course at 10steps2.com


19/09/2012      Xavier Corman | Martin | Martin van|Wunnik Blagojević
                         Xavier Corman van Wunnik Vladimir                    18
                                                                        10steps2.com
ROI = Return on Investment
                Bank loan

                100 + 12 = 112

                Principal & Interest

                 Able to pay back over time

                 Guarantees


19/09/2012           Xavier Corman | Martin | Martin van|Wunnik Blagojević
                              Xavier Corman van Wunnik Vladimir              19
100
                                                               122


                                                               506




19/09/2012         Xavier Corman | Martin | Martin van|Wunnik Blagojević
                            Xavier Corman van Wunnik Vladimir              20
19/09/2012   Xavier Corman | Martin | Martin van|Wunnik Blagojević
                      Xavier Corman van Wunnik Vladimir              21
www.impulse.de
                               weighted average cost of capital (WACC)

                                       Cost of Equity (Re) = Rf + Beta (Rm-Rf).
                                         After-tax cost of debt




  19/09/2012     Xavier Corman | Martin | Martin van|Wunnik Blagojević
                          Xavier Corman van Wunnik Vladimir                       22
Exit Strategy
             A business angel is a wealthy individual who invests in a startup
             company with his or her own money with the aim of achieving a
                      financial return through capital gain at exit.


                                                                                   VC/IPO
                                                                VC
                                             BA
                           FFF
              YOU



No STRATEGY to the next step => NO INVESTOR !

19/09/2012                 Xavier Corman | Martin | Martin van|Wunnik Blagojević
                                    Xavier Corman van Wunnik Vladimir                       23
How to finance your start-up ?
  Clients
                                                                                   FFF

 Suppliers
                                                                                   BA

   Banks
                                                                                   VC

Shareholders
                                                                                  Crowd
                                                                       Equity
                                                                       LT Debts
                                                                       ST Debts


                                                                  Public


                                                                  Banks


                                                              Shareholders


 19/09/2012    Xavier Corman | Martin | Martin van|Wunnik Blagojević
                        Xavier Corman van Wunnik Vladimir                                24
Q&A




19/09/2012   Xavier Corman | Martin | Martin van|Wunnik Blagojević
                      Xavier Corman van Wunnik Vladimir              25

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The TOP 5 reasons why an investor will NOT invest in your startup

  • 1. Finance workshop The top 5 reasons why an investor will NOT invest in your startup Martin van Wunnik Xavier Corman Vladimir Blagojević 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 1
  • 2. Who are we ? Martin van Wunnik Xavier Corman Vladimir Blagojević 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 2
  • 3. This presentation is available for free: http://www.slideshare.net/xaviercorman http://www.slideshare.net/FinanceCoach24 http://www.slideshare.net/VladimirBlagojevic 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 3
  • 4. http://www.ideaowl.com/blog/2011/06/microconf-2011-3-surprises- and-learnings-from-best-conference-ever/ 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 4
  • 5. Investor’s motivations 1. Team 2. Business model 3. Scalability 4. ROI 5. Exit strategy 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 5
  • 6. Team Marketing Sales CEO Technical Operational 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 6
  • 7. Business model 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 7
  • 8. Business model “How will you make money ?” Tech startup: Your product is only 1/3 ! Freemium (« build a community ») Burn rate, cash crunch, « valley of death » 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 8
  • 9. Required Cash-Flow 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 9
  • 10. A Scalable Business Checklist @VladBlagi 10steps2.com Get your innovations funded 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 10
  • 11. WHAT ARE YOU BUILDING? 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 11 10steps2.com
  • 12. 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 12
  • 13. WHAT IS YOUR INVESTOR THINKING ABOUT? 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 13
  • 14. YOU ARE BUILDING A MONEY MAKING MACHINE 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 14
  • 15. Who is buying? Why are you How will you worth buying? make money? Why are you different? How will you 19/09/2012 reach Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 15 customers?
  • 16. AND IT’S GOT TO BE SCALABLE 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 16
  • 17. Easy to deliver Big, growing market of buyers Easy to sell Unfair advantage Repeatable Scalable business growth engine 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 17
  • 18. 10 STEPS TO A SCALABLE BUSINESS A free course at 10steps2.com 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 18 10steps2.com
  • 19. ROI = Return on Investment Bank loan 100 + 12 = 112 Principal & Interest  Able to pay back over time  Guarantees 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 19
  • 20. 100 122 506 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 20
  • 21. 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 21
  • 22. www.impulse.de weighted average cost of capital (WACC) Cost of Equity (Re) = Rf + Beta (Rm-Rf). After-tax cost of debt 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 22
  • 23. Exit Strategy A business angel is a wealthy individual who invests in a startup company with his or her own money with the aim of achieving a financial return through capital gain at exit. VC/IPO VC BA FFF YOU No STRATEGY to the next step => NO INVESTOR ! 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 23
  • 24. How to finance your start-up ? Clients FFF Suppliers BA Banks VC Shareholders Crowd Equity LT Debts ST Debts Public Banks Shareholders 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 24
  • 25. Q&A 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 25