Boot Strap Model 1

BrógMhóirIall
Ideas for Bootstrapping a business in Ireland, with particular focus on Technology

Background
With the success of the first Outvesting Round at http://www.outvesting.org/, I’m adding to the 1st bootstrap round with a model to increasing funds by 1000% within year one for

Why Technology Based?
Author has a particular interest in Technology startups
Tourism, Travel, Retail and Property sector is over subscribed and under pressure
Further investment will displace jobs
Manufacturing is high cost setup with high cost base
Develop a technology – licence, exdport and exploit

The problems...
Lots of Irish investor capital has been previously tied up in Property
FDI and EU funds have gone into capital projects where property acquisition is often the most expensive part
M50, LUAS, Regeneration, Road Network
Development of Industrial/Business Parks
Factories and (Grant Aid Funds, FDI expenditure)

Traditional Investment Model
Private investments lean towards 2nd homes, tax incentive properties
Revenue Commissioners B.E.S. Scheme probably more awkward and has a very narrow application
Tech not as attractive as Retail and Tourism

Bootstrap Funding Sources
Individual
No Technology or Product.
Personal Funds
€10 - €10,000
Personal Funds
And Friends/Family
€10 - €50,000
Bank (Personal)
€1,000 - €50,000
Local Government Agency
€1,000 - €9,000
Business Angel
€5,000 - €10,000
Client Order
€5,000 - €50,000
Individual. Bootstrap to company
New product, technology, invention, software application, idea
Bank
(Personal &
Investment)
€5,000 - €1,000,000
Enterprise Ireland
€19,000 - €250,000
Venture Capital
€100,000 - €5,000,000
BES
€10,000 - €50,000
Client Order
€5,000 - €50,000
Business Angel
€5,000 - €50,000

Bootstrap Model
Idea & Conceptualisation
Yes
Idea Validation
Product Test/Market
Research
Do you need Government
Support
Is product new?
Is there demand?
No
Can it be supported by ei?
Yes
Private Capital and
Government Support
Private Capital route

Time
Funding and Support
Actions and Activity
External Funds
Apply for ei Feasibility Study
Match up with a mentor, business partner or angel
Year 1
Hire accountants
And consultants and prototype partners
Apply for bank loan, EU funds and invest private capital
€10,000
-
€50,000
Use market research and product development students at 3rd level institutions
[ Private Equity
Gap ]
Apply for incubation
Complete ei
Training Programme
Year 2
Build Prototype
Prepare for ei R&D Application
Market Research
Use network to prepare BES, VEC
Apply for BES and Matching Bank Funds
Year 3
€100,000
-
€1,000,000
Prepare Market Strategy
Complete First Version of product for Market

In Summary
Via @PatPhelan, Outvesting.org,
By taking an export-potential technology or high growth idea and matching a

Boot Strap Model 1

by PrimaryPosition.com on Nov 10, 2009

Accessibility

Categories

Tags

Upload Details

Usage Rights

2 Embeds 32

Statistics

Boot Strap Model 1 — Presentation Transcript

http://primaryposition.blogspot.com	31
http://webcache.googleusercontent.com	1