CU NVC Boot Camp: Financial, Funding & Investor Presentations, Frank Moyes

Financial Projections & Funding Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado Frank Moyes

Agenda
Quiz
Financial Projections
Funding
Investor Presentations
Frank Moyes What is the V-word?

Financial Projections
Focus Profitability & Cash Flow
Frank Moyes

Profitability
= Revenue – Expenses
Financial Viability
Income Statement Frank Moyes

Frank Moyes Operating Income Statement Year 1 Revenues $100,000 Cost of Revenues 60,000 Gross Profit 40,000 % Gross Profit 40% Operating Expenses Sales & Marketing 15,000 Development 5,000 Administrative 10,000 Total 30,000 Operating Income $10,000

Focus on
Revenue Model
How many widgets, customers, transactions
At what price
Gross Profit Margins
Price vs.
Cost to produce
Expressed as a %
Operating Expense
Frank Moyes

Cash Flow
Profitability
Working Capital
Equipment
Or Cash In vs. Cash Out
Cash Flow Frank Moyes

Tools
Financial Models of Income Statements and Cash Flow
Simple Income Statement
Most Common
Frank Moyes

Funding
Types & Sources
Pros & Cons
Frank Moyes

Types of Funding
Equity
Debt
Grants
Frank Moyes

Equity
Sell ownership in your company
Advantage - permanent capital
May lose control (dilution)
Responsibilities to investor – requires return
0 Frank Moyes

Debt
Loan for a set period & interest rate
Source – banks, SBA, Guido
No dilution
Must pay back + interest
Start-ups can ’t get
Vulnerable when things go south
0 Frank Moyes

Grants
Federal SBIR, CREDA
Research – university & corps.
State, regional and municipal development agencies
Foundations
freemoney.com
No equity or debt
Red tape and strings
Grant mentality
Frank Moyes

Sources of Funding
Venture capital
Angels
Banks
Friends & family
Best?
Use Own Resources to First Prove the Concept Frank Moyes

Investor Presentations
Importance of introduction
Opportunity/Need
Solution
Target Customer
Sustainable Competitive Advantage
Financial Viability
Management
Frank Moyes

CU NVC Boot Camp: Financial, Funding & Investor Presentations, Frank Moyes

by CU_NVC on Jan 23, 2012

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CU NVC Boot Camp: Financial, Funding & Investor Presentations, Frank Moyes — Presentation Transcript