17. PROFIT
AND
LOSS
Earnings
-‐
COGS
Contribu@on
Margin
-‐
Overhead
Expenses
EBITDA
-‐
Deprecia:ons
and
amor:za:ons
EBIT
+
Financial
result
EBT
-‐
Taxes
Net
Result
19. PROFIT
AND
LOSS
Earnings
-‐
COGS
Contribu@on
Margin
-‐
Overhead
Expenses
EBITDA
-‐
Deprecia:ons
and
amor:za:ons
EBIT
+
Financial
result
EBT
-‐
Taxes
Net
Result
20. COST
OF
GOODS
SOLD
How
many
things
you
sell
X
How
much
it
costs
to
make
them
21. PROFIT
AND
LOSS
Earnings
-‐
COGS
Contribu@on
Margin
-‐
Overhead
Expenses
EBITDA
-‐
Deprecia:ons
and
amor:za:ons
EBIT
+
Financial
result
EBT
-‐
Taxes
Net
Result
27. PROFIT
AND
LOSS
Earnings
-‐
COGS
Contribu@on
Margin
-‐
Overhead
Expenses
EBITDA
-‐
Deprecia:ons
and
amor:za:ons
EBIT
+
Financial
result
EBT
-‐
Taxes
Net
Result
28. CASH
FLOW
STATEMENT
Collec:bles
-‐
Payments
(Direct
/
Overhead)
Opera@ng
Cash
Capital
Subscrip:ons
+
New
Debt
-‐
Principal
of
debt
-‐
Dividends
Financial
Cash
-‐
Investments
+
Temporary
financial
earnings
Investment
Cash
Annual
Cash
Balance
30. But
if
the
same
company
sells
with
a
difference
of
payments
above
5
months
the
company
can
go
bankrupt
Margin
Collec:ons
Payments
Cash
balance
31. Price
x
Volume
vs
Variable
cost
vs
fixed
cost
Price
x
volume
Price
x
volume
-‐
Cost
-‐
Cost
Contribu@on
Margin
Contribu@on
Margin
-‐
Overhead
Expenses
-‐
Overhead
EBITDA
EBITDA
Price
x
volume
Price
x
volume
-‐
-‐
Cost
Cost
Contribu@on
Margin
Contribu@on
Margin
-‐
Overhead
Expenses
-‐
Overhead
EBITDA
EBITDA
32. BALANCE
SHEET
Ac@ve
where
is
my
money
Passive
where
does
it
come
from
Long-‐Term
Assets
Tangible
Equity
Social
Capital
Investments
Net
Results
Deprecia@ons
Earnings
Long-‐Term
Outside
Capital
Banks
Short-‐Term
Assets
Working
Capital
Debt
Treasury
Short-‐Term
Outside
Inventory
Capital
Creditors
Short-‐term
bank
VAT
33. 1
M
Tshirt+
94
M
EUR
1st
liga
VS
Price
is
what
you
pay.
Value
is
what
you
get
Warren
Buffea
34. FCF:
what
is
it?
CAPM:
r%
=
α
+
βp
=
Rf
+(β*MRP)
WACC=
Ke
*
(E
/
(D+E))
+
Kd
(D
/
(D+E))
FCF
=
Net
income
+
deprecia:on
–
changes
in
working
capital
–
Capital
expenditures
Earnings
Expenses
EBITDA
Amort.
EBIT
T
in
EBIT
Amort.
NOPLAT
Varia@on
CAPEX
FCF
WC
35. CAPM
r%
=
Rf
+(MRP*β)
Price
of
Risk
EQUALS
Market
Risk
Prem,
Non
Risky
How
much
it
Stuff
that
mafers
41. WACC
WACC=
Ke
*
(%e)
+
Kd
*
(%d)
Money
COSTS
How
much
You
use
Equity
Costs
Debt
Costs
42. FCF:
what
is
it?
CAPM:
r%
=
α
+
βp
=
Rf
+(β*MRP)
WACC=
Ke
*
(E
/
(D+E))
+
Kd
(D
/
(D+E))
FCF
=
Net
income
+
deprecia:on
–
changes
in
working
capital
–
Capital
expenditures
Earnings
Expenses
EBITDA
Amort.
EBIT
T
in
EBIT
Amort.
NOPLAT
Varia@on
CAPEX
FCF
WC
47. HOW PLAYERS INVEST
Friends
and
family
Capital
1
Family
Office
Riesgo
nvolucración
Business
Angels
Industriales
Source:
Perennius
48. HOW PLAYERS INVEST
Friends
and
family
Capital
1
Family
Office
Riesgo
nvolucración
Business
Angels
Industriales
2
Pureza
financiera
Source:
Perennius
49. HOW
PLAYERS
INVEST
Friends
and
family
Capital
Origen
de
los
fondos
3
1
Family
Office
Riesgo
nvolucración
Dinero
propio
Dinero
de
terceros
Business
Angels
Industriales
2
Pureza
financiera
Source:
Perennius
56. INVESTMENT
CRITERIA
Why
they
Invest
What
they
Measure
Decision
Time
Family,
Friends
and
Personal
Confidence
Fast
Fools
Commitment
Subsidies
and
Compliance
Policy
alignments
Slow
Public
Assistence
merits
Business
Angels
Personal
affinity
Profitability
Fast
Investment
Venture
Capitalists
Profitability
Slow
criteria
Contribu:on
to
Industrial
Partners
Strategic
criteria
Slow
business
Source:
HighGrowth;
Elaboración
Okuri
Ventures
57. DESIRED
RETURN
Target
yearly
Holding
period
Investment
Entry/exit
return
(years)
death
rate
mul@plier
PE
25%+
3-‐5
<20%
x3,5
VC
25%+
3-‐5
>60%
x10+
BA
15%+
4-‐7
>80%
x20+
59. How to determine your business drivers
Target: Commercials in FMCG companies
5.000 users first year , recurrent and growing
Go to 5 of the 100 companies in the market
How
1 Market Average is 1000 users/ client
Do you still have 5.000 Users?
I personally (or my network) know 5 decision takers in those
How 2 companies, initial prospection has been made
Do you still have 5.000 Users?
How 3
Do
de
companies
have
control
over
the
users?
Do
you
sFll
have
5.000
Users?
How 4
Are my clients going to demand a trial phase
Do you still have 5.000 Users?
How 5
Success in conversion rate from trial to client?
Do you still have 5.000 Users?
60. How to determine your business drivers
Target: Commercials in FMCG companies
5.000 users first year , recurrent and growing
Go to 5 of the 100 companies in the market
Marke:ng
/
Sales
Strategy
1 Market Average is 1000 users/ client
Do you still have 5.000 Users?
I personally (or my network) know 5 decision takers in those
2 companies, initial prospection has been made
Do you still have 5.000 Users?
Scalability
3
Do
de
companies
have
control
over
the
users?
Do
you
sFll
have
5.000
Users?
4
Are my clients going to demand a trial phase
Success
of
Do you still have 5.000 Users?
product
/
service
5
Success in conversion rate from trial to client?
Do you still have 5.000 Users?
71. WHaT WE INClUDE IN a FINANCIal 1 PaGEr: COMPaNY
Opportunity description
WHO @RE YOU Business Model
Need S^tisfied
Products / Services
WH@T DO YOU DO M^rket Objective
Competitors
HOW DO YOU S^les & M^rketing Str^tegy
@CHIVE IT Current ^nd Funnel Clients
OPPORTUNITY FOR Investment @lloc^tion
THE INVESTOR Exit Str^tegy
72. WHaT WE INClUDE IN a FINaNCIal 1 PaGEr: INVESTOr
Business Sector (T ^gs)
Cont^ct Inform^tion
Executive T e^m
RELEV@NT
Fin^nci^l Inform^tion
INFORM@TION FOR
Investment St^ge
THE INVESTOR
Current C^pit^l
Monthly Burn R^te
Pre-Money V^lu^tion
Investment C^pit^l
Current Investors
Forums
73. WHaT WE INClUDE IN a FINaNCIal 1 PaGEr: NUMbErS
Mul@plier
Year
0
…
Year
n
Revenues
CF
Breakeven
EBITDA
Net
Result
Assets
Liabili:es
Cash
Money… when ^nd how much
76. Is
it
the
type
of
stuff
I
invest
in?
2. Criteria checklist
77. A WORD ABOUT RETURN EXPECTATIONS
Source: Okuri Ventures
78. 3. 1 Pager
“Before beginning with any startup you need to find a problem and the
way to solve it without screwing anybody in the process”
- Tristan Mace
