Do you need to get funded?

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This was supposed to be a summary of what we have covered on the rahoituskone.fi blog so far. However, we got excited and decided to not only limit the presentation to what we have written in the …

This was supposed to be a summary of what we have covered on the rahoituskone.fi blog so far. However, we got excited and decided to not only limit the presentation to what we have written in the past. Hope you like the result!

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  • 1. The Purpose of this Presentation
  • 2. What we’ll cover1.  Why one person cannot build a company2.  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 TimeTo concentrate on: » Their Business » Their Customers » Their Employees » Their Sales » Their Expansion
  • 4. And They Need Time To be human14.7.2011
  • 5. UnfortunatelyWe cannot do everything on our own
  • 6. Why? 6
  • 7. And the entrepreneurs that try to do everything on their own…  Are bound to fail
  • 8. Advice: Network Be networked and Get help!
  • 9. Advice: Outsource Outsourcing mandatory tasks 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 your Cash-flow13.7.2011 www.greenstep.fi 10
  • 11. WHY DO YOU NEED 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 good cash-flow plan1.  Will tell you if you need funding and how much2.  Is demanded by all potential investors in your company13.7.2011 www.greenstep.fi 12
  • 13. Should YouBootstrap or Get Funded?
  • 14. Option 1: Bootstrap   “The art of creating a company without funding”  Entrepreneurs that bootstrap their way tosuccess will have to pay all of the company’s expenses, and will have to keep a tight cost control
  • 15. How do you bootstrap 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 market is critical, especially when bootstrapping ”If you’re not embarrassedwhen you ship your first version you waited too long..” Matt Mullenweg, CEO & Cofounder of Wordpress
  • 17. Option 2: Get Funded 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 will not 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 the difference 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 realize that 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 have a look at all ofyour 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. I hope..
  • 25. And remember to Enjoy 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 do everything 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 successful14.7.2011 www.greenstep.fi 27
  • 28. Br, Fredrik Teir Marketing Director of Greenstep & Chief Editor of rahoituskone.fi +358 440 16 1288 fredrik.teir@greenstep.fi @rahoituskone