0
Professional Services Training & Consulting




      A Live Training Project in ZENeSYS Certification Program
           ...
1. Executive Summary
2. Methodology Adapted                                        Opportunities

3. Assumptions Made
4. S...
3   Copyright © Zenesys & Kuber   Professional Services Training & Consulting
▶ It is said that “Recessionary times are best time to begin a new start-up”

              • Why                         ...
Investors Offerings                              Business Initiatives
▶ Funding is available for growth               ▶ Di...
Investors Offerings                           Business Initiatives
▶ Innovative solutions having scope           ▶ To mini...
7   Copyright © Zenesys & Kuber   Professional Services Training & Consulting
▶ Following is the approach used to bring about results:

         •Gathering Information for key drivers behind Investors...
9   Copyright © Zenesys & Kuber   Professional Services Training & Consulting
▶ This study has been subject to following assumptions:

      1.     •The research was conducted based on global downturn...
11   Copyright © Zenesys & Kuber   Professional Services Training & Consulting
▶ Research Findings

     1. Growth sector initiatives are likely to be unaffected by recession

     2. Business scalabil...
1. Growth sector initiatives are likely to be unaffected by recession
▶ Findings
      ⊲ Investors prefer to safeguard the...
1. Growth sector initiatives are likely to be unaffected by recession
     Leveraging Opportunities                       ...
1. Growth sector initiatives are likely to be unaffected by recession
      Leveraging Opportunities                      ...
1. Growth sector initiatives are likely to be unaffected by recession

▶ Conclusions
      ⊲ Investors readily provide fun...
2. Business scalability helps secure funding
▶ Findings
         ⊲ Startups can scale up (Vertical) or scale out (Horizont...
2. Business scalability help secure funding
      Leveraging Opportunities                                                ...
2. Business scalability help secure funding
▶ Conclusions
      ⊲ Proper estimation and future growth plan in place makes ...
3. Credentials of Management
▶ Findings
         ⊲ Credentials of management is a relief for inventors to entrust their mo...
3. Credentials of Management
      Leveraging Opportunities                                                               ...
3. Credential of Management is important
▶ Conclusions
      ⊲ Start-Up has to build a robust team extremely passionate an...
4. Check and control on operations and finance
▶ Findings
      ⊲ Check and controls are like speedometer of growth, getti...
4. Check and control on operations and finance
      Leveraging Opportunities                                             ...
4. Check and control on operations and finance
▶ Conclusions
      ⊲ Checks and controls determine direction of business, ...
5. Social & Environment friendliness gets better funding
▶ Findings
     ⊲ Lack of awareness about environment and clean-t...
5. Social & Environment friendliness gets better funding
▶ Conclusions
      ⊲ The business idea having future growth and ...
6. Providing Innovative Solution
▶ Findings
      ⊲ Requires great deal of acumen to involve in such projects. Quantitativ...
6. Providing Innovative Solution
▶ Conclusions
      ⊲ Positive market trends and innovation itself is good to convince in...
30   Copyright © Zenesys & Kuber   Professional Services Training & Consulting
a. Start small & bootstrap your startup
      Raise initial seed capital from Family and Friends and own resources.
     ...
b. Selecting recession proof robust sectors.


      Identify innovative as well as high growth areas.
      Areas relat...
c. Having skilled & experienced Management Team

      Securing funds is easier for a team of people than an individual.
...
d. Robust process to monitor cash flow


 Proper checks & controls on cash flow will enable better forecasting analysis.
...
e. Business should be scalable

 A scalable business helps investor to forecast his cash-flow, ROI & exit plan
 It’s an ...
f. Identify the Investor




     Our Recommendations:

  Family & friends
  Y- combinators / Institutions
  Business A...
▶ Research Evaluation
  ⊲ With respect to our analysis for each finding the preferred funding rating assigned previously
 ...
38   Copyright © Zenesys & Kuber   Professional Services Training & Consulting
▶ To fund a startup venture in recession take notice the
  following points:
     ⊲ Consider market research and prepare a...
▶ Following is the list of links utilized in this study
▶ In strategy and challenges
     1)    http://www.financialexpres...
▶ Following is the list of links utilized in this study
▶ In Recession proof sectors:
     ⊲   http://www.tworkshb.com/the...
Final Presentation on
Securing Funding in lean
times for a start up venture.


For Zenesys Consulting
Batch July 2009


Fr...
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Funding For Startups

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Transcript of "Funding For Startups"

  1. 1. Professional Services Training & Consulting A Live Training Project in ZENeSYS Certification Program See the teamwork discussion on how the study evolved on http://zenesys.ning.com/forum/topics/team-3-advice-to- startups?id=2514113%3ATopic%3A8033&page=1#comments Sourabh Maggo Shubhanshu Gupta Vijaykumar Ramalingam Shubhrangshu Barman Roy
  2. 2. 1. Executive Summary 2. Methodology Adapted Opportunities 3. Assumptions Made 4. Strategies & Challenges 5. Recommendations Threats 6. Summary 2 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  3. 3. 3 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  4. 4. ▶ It is said that “Recessionary times are best time to begin a new start-up” • Why • What •Less competition in market •Growth Sector initiatives •Manpower availability •Social responsibility impact •New Blood boost Growth •Clean-tech production •Innovation development • How • Action •Gather Trends •Business plans •Calculate Cost •Meet investors • Analyse investment •Viability Reports •Generate Funds •Secure Funding ▶ However to Secure funding for a new start-up in lean times is a challenge. ▶ In next few slides this study will guide you through the various challenges and strategies relating to funding a start up in lean times. The Summery of same is up next. 4 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  5. 5. Investors Offerings Business Initiatives ▶ Funding is available for growth ▶ Diligently chose a startup venture sectors. and business vertical. ▶ Investors are proactive and ▶ Gather sufficient historical data rationally invest in business and forecasting analysis to secure venture. funding. ▶ Need well formulated business ▶ Business scalability is key to growth projections to facilitate insure returns on investment for investors with their exit strategy. investment. ▶ Expect future vision and courage ▶ Wise selection of board of to transform dreams in promoters. promoting team. ▶ Fair practice in controlling ▶ Offer fair and transparent financial measures to minimize in and operational controls. Better interventions in managerial attain some global quality decisions. standards. 5 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  6. 6. Investors Offerings Business Initiatives ▶ Innovative solutions having scope ▶ To minimize risk factor business in creating demand in should consider market research. marketplace. ▶ Minimum growth business should ▶ Investor aim to double total have is 40 % per annum to break investment in 4 ~ 5 Years time. even in 4 ~ 5 years. It should target more to grow fast and expand business. 6 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  7. 7. 7 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  8. 8. ▶ Following is the approach used to bring about results: •Gathering Information for key drivers behind Investors mindset 1. •Assuming various options and possibilities that are part of key drivers 2. •Conducting the web based secondary research to identify the facts and 3. correlating with our hypothesis •Utilising the filtered result to focus on challenges and opportunities for getting 4. funds in lean market •Making reports of our analysis to recommend the best available funding in 5. downturn economy 8 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  9. 9. 9 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  10. 10. ▶ This study has been subject to following assumptions: 1. •The research was conducted based on global downturn economy. 2. •We looked at funding for startups projects only and not for expansion projects 3. •This study is meant for big projects wanting high investment 4. •All the data is collected through secondary research only 5. •Recommendations is based on funding of startup in India 10 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  11. 11. 11 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  12. 12. ▶ Research Findings 1. Growth sector initiatives are likely to be unaffected by recession 2. Business scalability help secure funding 3. Credential of Management is important 4. Checks & Controls on Finance and Operations 5. Social & Environment friendliness gets better funding 6. Providing Innovative Solutions 12 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  13. 13. 1. Growth sector initiatives are likely to be unaffected by recession ▶ Findings ⊲ Investors prefer to safeguard their funding in recession by investing in recession proof verticals. Resources are available for accurate forecasting, however investors does not invest in research. Their exit plans are mainly mergers, acquisitions and IPOs Leveraging Opportunities Market Evidence 1. Exit plan for investor: ◉ Choice of planned exit strategy enable investment. ⊲ In the growth sector, investor mainly look for revenue For Venture Capitalists For Angel Investors growth, that contribute as value to a) IPO a) Trade Sale or acquisition the investment. b) Acquisition b) Sale of shares to other shareholders ⊲ It is evident that despite slowdown c) Secondary Sale c) Sale to third parties and availability of the number of d) Liquidation d) Going public (IPO) exit options for investors, they e) Company Buy Back e) Liquidation of assets invest in growth oriented verticals. 13 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  14. 14. 1. Growth sector initiatives are likely to be unaffected by recession Leveraging Opportunities Market Evidence 2. Investors are proactive ◉ Investment in services sector constitute about 60% of rather than protective total funding where Investor have been able to protect their returns. ⊲ Lack of forecasting analysis keep the ◉ In 2008, despite slowdown the angel investor has investors protective. invested in below mentioned verticals: ⊲ In growth sector the investors positively Industrial & Equipment Healthcare invest as this vertical will keep them returns & Medical Software Biotech despite slowdown. Energy Media Retail Verticals 3. Which investor is good Angel 16% 13% 12% 11% 8% 7% Investment: ⊲ Since in recession the revenue growth can not be predicted thus based on business ◉ High Investment means bigger investor projection the investor return on investment is compared and suitable investor is selected. ⊲ Based on capital Investment requirements investment is chosen. Source: www.go4funding.com 14 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  15. 15. 1. Growth sector initiatives are likely to be unaffected by recession Leveraging Opportunities Market Evidence 4. Recession Proof Robust ◉ Survey by MasterCard Worldwide in 2008 shows Online shopping in India has grown by about 15% YOY . The top three sectors most online purchases include Airline tickets , Home appliances and CD’s/DVD’s..(*01) ⊲ As per market trends the choice of startup ◉ Although Venture Capital Investments have fallen 250% in in recession proof industry will be India in H1 2009 but the investments continued in IT /ITeS complementary for funding in lean times sectors (65% in Value Terms) and domestic demand driven sectors like financial services (microfinance), Healthcare & ⊲ Such possible verticals are mentioned education..(*02) below: ◉ About $1.8 billion VC investment had happened in Healthcare in India…(*03) Essential Goods & Affordable Luxury IT Life Sciences Clean Tech Education Services Goods /Services • Fast food Joints •Budget Services •Virtualization • Bio Technology • Energy Efficient • Online education • Second Hand Car • Luxury goods at • Open Source Software • Medical Devices products & services • Educational Solution sales affordable and smaller • Green IT • • Alternate Fuels providers. • Takeaway Joints sizes e.g. packaged • Online collaboration • Transportation • Home Maintenance water in smaller tools • Waste Management sizes, Rent a bag etc • Food Manufacturers •Online Retail • Domestic Tourism • Funeral Parlors • Mobile Computing • Garden Supplies & • Legal Services • SaaS Seedlings • Healthcare Services *Source – (*01), (*02), (*03) 15 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  16. 16. 1. Growth sector initiatives are likely to be unaffected by recession ▶ Conclusions ⊲ Investors readily provide funds for growth oriented verticals. Service sectors have managed to secure funds in recessionary times as well. ⊲ Online services, Financial services, Healthcare & Education sectors are the preferred sectors ⊲ Business should take up consulting services to know market trends and forecasting, which can get them right investment with ease of availability . Preferred Funding *Ratings 1. Venture capitalist … 2. Angel investor … 3. Conventional capital … * With extensive research the team has rated a suitable funding style on the scale of  ~  where  is highest and  is least. 16 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  17. 17. 2. Business scalability helps secure funding ▶ Findings ⊲ Startups can scale up (Vertical) or scale out (Horizontal). Scalability of business is key to securing funds in lean time as there are costs associated with scaling up. To ensure future flow of funds business must meet its planned growth as well. Leveraging Opportunities Market Evidence 1. Exit option visibility ⊲ If a business is not scalable, investor will ◉ Most internet startups were “thought” to be typically not invest as its difficult for him scalable , but many web based business models anticipate the costs associated, his ROI did not take into account the enormous marketing and hence his to plan his exit costs associated with the scale up , as a result the companies burned cash they had raised, could ⊲ The ultimate goal for a VC is conversion not get further funding and went bankrupt …(*04) of their illiquid investment of private company stock into either cash (by a sale) or freely tradable stock (by an IPO or merger of the start up into a public company) *Source – (*04) 17 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  18. 18. 2. Business scalability help secure funding Leveraging Opportunities Market Evidence 2. Strong forecasting ◉ When Google started Gmail, account opening was analysis only through invitation so that they could use ⊲ A strong forecasting analysis with a their current server capacity. With the limited focus on cash flow, profitability & funds they had they controlled their burn rate reduction of losses with respect to and did not invest in new servers, as it would scalability will help investors mean high investment / cost. As Gmail picked visualize the life cycle of the start up, securing funding became all the more up. easy…(*05) ⊲ A plan for vertical or/and horizontal scalability will enable the start up and the investor to estimate the burn rate of the funds and in turn will help secure funds accordingly. *Source – (*05) – “Business Week” August ,2009 18 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  19. 19. 2. Business scalability help secure funding ▶ Conclusions ⊲ Proper estimation and future growth plan in place makes a business scalable. ⊲ Horizontal scalability is preferred than vertical scalability as cost pressures are low in the former. ⊲ Define proper exit strategy for investor. Preferred Funding *Ratings 1. Institutional Investor … 2. Venture Capitalist … 3. Conventional Capital Sources … * With extensive research the team has rated a suitable funding style on the scale of  ~  where  is highest and  is least. 19 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  20. 20. 3. Credentials of Management ▶ Findings ⊲ Credentials of management is a relief for inventors to entrust their money. It reduces investor’s intervention, increase the reliability and boost growth confidence. It ensures that a skilled pilot takes off the business flight. Leveraging Opportunities Market Evidence 1. Good governance is the key ⊲ A clear demarcation between ownership & governance goes in favor of the start up in context of securing funds, resources and ability to execute. ⊲ Single owner / founder driven startup has a negligible chance of securing funds ◉ An analysis of reasons suggest that over 60% of business failure is due to poor management practice .(*06) *Source – (*06) 20 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  21. 21. 3. Credentials of Management Leveraging Opportunities Market Evidence 2. Building confidence of ◉ Getting a set of customers before raising money gives confidence to the investor..(*7) the Investor ◉ Zebu Group, a marketing start up managed initial seed ⊲ Having experienced people with relatively capital by boot strapping and asking the customer to pay good CV’s on the team helps build the in advance for the work..(*8) (*9) confidence of the Investor irrespective of ◉ Small business owners will need sophisticated the type of the investor. management skills to be successful in an increasingly complex global marketplace. In addition, technology will ⊲ Bootstrapping (Family/Friends/Founder) or play a bigger role in operating and managing small Y-combinators are lesser of a challenge businesses.....(*11) while securing funding as they do not ◉ Research suggests that entrepreneurship graduates are focus as much on the management’s three times more likely to be self-employed and three credential. times more likely to be involved in forming new ventures than those with non-entrepreneurship business 4. Recession Proof Robust degrees...(*12). ◉ IIM-A, 35 startup, 7 achieved scale, 3 got listed sectors ◉ Serial entrepreneur have high chances of getting funds: ⊲ It is team that makes a business work even HBR case study in no market or downturn economy. The ◉ It is a myth that to succeed in business, you need a VC. vision and road ahead is decided by the Some of the biggest names such as Infosys, HCL, didn’t leaders rather have it. …(*10) *Source – (*7), (*8), (*9), (*10),(*11),(*12) 21 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  22. 22. 3. Credential of Management is important ▶ Conclusions ⊲ Start-Up has to build a robust team extremely passionate and willing to persevere the business idea. ⊲ Management credentials are much more important when VC’s are involved as deal sizes are quite big. ⊲ Management should be experienced to handle new challenges and take risk and should have more than 100% passion and have bias for execution ⊲ Honest and sharp to deal with investors. Preferred Funding *Ratings 1. Venture Capitalist … 2. Angel Investor … 3. Institutional Investor … * With extensive research the team has rated a suitable funding style on the scale of  ~  where  is highest and  is least. 22 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  23. 23. 4. Check and control on operations and finance ▶ Findings ⊲ Check and controls are like speedometer of growth, getting funding require clearly laid down policy and procedure connected to operations and finance to provide fair picture of business standing and hence decision making. Leveraging Opportunities Market Evidence ▶ Exit Plan for Investor ⊲ The ability of individuals to manage the resources of their ⊲ Based on Financial controls a investor business, sometimes referred to as "character," is a prime formulate its exit plan for capital consideration when determining whether or not a loan will investment in an enterprise. be made. ⊲ It is mainly as follows: ⊲ Entrepreneurs gain the insight needed to seize ◉ Good Financial Reports > IPO opportunities, sustain growth, maintain tight control over ◉ Not Efficient Reports > M&A their company's direction, and avoid setbacks.(*13) ⊲ The due diligence by venture capitalist involves analysis of ▶ Strong forecasting analysis financial statements….(*14) ⊲ The cash flow are predicted based on ⊲ Setting up a budget with estimated sales and expenses will future operations and finances in permit you to validate and communicate your companies mind, any deviation causes problems financial condition to your banker, investors, customers and to investors vendors....(*15) Source: (*13), (*14), (*15) 23 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  24. 24. 4. Check and control on operations and finance Leveraging Opportunities Market Evidence ▶ Which Investor to choose ◉ To protect their investment some sources like ⊲ Investor seeks Low Venture Capitalist (VCs), engage in active involvement=Low Risk=Low monitoring to protect their investment. Others investment on the contrary High like factoring companies and lenders, rely heavily Risk = High Involvement = High on collateral. …(*16) investment. As per need of capital ◉ Institutional Investors have low involvement for the investor has to be chosen and their inability to monitor. if institutional investors accordingly have the transparent are effective monitors, then the presence of control on finance and operations. institutional investors should reduce the frequency of M&A … (*17) Source: Book “Attracting Capital” Pg.21 (*16), Pg.5 (*17) 24 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  25. 25. 4. Check and control on operations and finance ▶ Conclusions ⊲ Checks and controls determine direction of business, hence it is integral part to choose an investor and redeem an investor. ⊲ Business should monitor the usage of funds in the right direction with the appropriate maintenance of funds flow and debt equity for improving funding. ⊲ Operational efficiency reduces the cost and increase credit rating. Preferred Funding *Ratings 1. Angel Investor … 2. Venture Capitalist … 3. Institutional Investors … * With extensive research the team has rated a suitable funding style on the scale of  ~  where  is highest and  is least. 25 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  26. 26. 5. Social & Environment friendliness gets better funding ▶ Findings ⊲ Lack of awareness about environment and clean-tech in India push the funding away. On the contrary, developed countries has positive effect on funding a venture with Nobel thinking. Leveraging Opportunities Market Evidence 1. Which investor to choose ⊲ “Going Green” Is the key now. ◉ Clean technology venture investments in North America, ⊲ Venture capitalist increasingly invest in Europe, China and India totaling a record $8.4 billion, up bio fuel, alternative energy, zero emission 38% from $6.1 billion in 2007. …*18 ventures. ◉ Indian companies raised $277 million in 14 disclosed ⊲ Some Government also support clean- rounds, down 20% from 2007. India accounted for 3% of tech ventures. the global total. …*18 ◉ Increasing awareness to fund the business with social responsibility. …*19 ◉ In the largest deals of the past year, venture capital firms poured money into companies tackling the global problems of climate change and disease. (*20) *Web-link: 18, 19, 20 26 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  27. 27. 5. Social & Environment friendliness gets better funding ▶ Conclusions ⊲ The business idea having future growth and global market has positive impact. ⊲ Govt. support is limited to subsidising the end product and reduced taxation. That helps increase demand analysis, hence attract investors. Preferred Funding *Ratings 1. Venture Capitalist … 2. Grants … 3. Conventional Capital Sources … * With extensive research the team has rated a suitable funding style on the scale of  ~  where  is highest and  is least. 27 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  28. 28. 6. Providing Innovative Solution ▶ Findings ⊲ Requires great deal of acumen to involve in such projects. Quantitative analysis to forecast sales. Initial research is integral to venturing into new development products. Leveraging Opportunities Market Evidence 1. Lack of Forecasting Analysis ⊲ A successful business idea can create the market and new trends. ⊲ New product usually lack historical data and analysis 2. Which Investor to choose ◉ A study shows Business Angels fund 30 to 40 ⊲ Based on business plan and kind of innovation some investors provide the times more ventures each year than Venture good source for startup to grow capitalists. ..(*21) Source: Attracting Investors Pg.28 (*21), (*22) 28 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  29. 29. 6. Providing Innovative Solution ▶ Conclusions ⊲ Positive market trends and innovation itself is good to convince investors. ⊲ Market research is must haves, which impact high seeding cost but lower risk. ⊲ Recession and lack of demand market may delay the startup. Preferred Funding *Ratings 1. Angel Investors … 2. Venture Capitalist … 3. Conventional Capital Sources … * With extensive research the team has rated a suitable funding style on the scale of  ~  where  is highest and  is least. 29 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  30. 30. 30 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  31. 31. a. Start small & bootstrap your startup  Raise initial seed capital from Family and Friends and own resources.  Give them a share in your startup rather than a salary. Our Recommendations:  Y- Combinators  Institution funded Innovation Incubation centers  Close relatives  Credit cards / Loans 31 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  32. 32. b. Selecting recession proof robust sectors.  Identify innovative as well as high growth areas.  Areas related to essential services and societal needs are a few options  Have an clear exit option for the investor. Our Recommendations:  IT/ITeS (essential services / Online retail etc)  Healthcare  Cleantech  Education  Innovative products / services 32 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  33. 33. c. Having skilled & experienced Management Team  Securing funds is easier for a team of people than an individual.  The partners/ directors having good CV’s help build confidence of the investor.  The clear demarcation of ownership & governance is essential.  The passion for success is the key. Our Recommendations:  Experienced / Retired people  Approaching an Business Angel, so that he also becomes a part of the team  Seniors from your ex-employer  Honorary people from institutions (IIT/IIM/IIPM etc) 33 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  34. 34. d. Robust process to monitor cash flow  Proper checks & controls on cash flow will enable better forecasting analysis.  Investors prefers a control on cash especially in recessionary times.  Helps build investor confidence Our Recommendations:  Robust but transparent process  A business plan showing cash burn rate for next 5 years will be useful 34 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  35. 35. e. Business should be scalable  A scalable business helps investor to forecast his cash-flow, ROI & exit plan  It’s an indicator of the aggressiveness and growth orientation of the entrepreneur . Our Recommendations:  Clean tech  Healthcare  Education All of the above have high scalability, as they are related to growth of the society 35 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  36. 36. f. Identify the Investor Our Recommendations:  Family & friends  Y- combinators / Institutions  Business Angels 36 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  37. 37. ▶ Research Evaluation ⊲ With respect to our analysis for each finding the preferred funding rating assigned previously are linked here to reach a common solution. Conventional Institutional Capitalist Investor Investor Venture Capital Grants Angel Nos. Research Contents 1. Growth sector initiatives are likely to be unaffected by recession 5 4 3 - - 2. Business scalability help secure funding 4 4 3 5 - 3. Credential of Management is important 5 4 - 3 - 4. Checks & Controls on Finance and Operations 4 5 - 3 - 5. Social & Environment friendliness gets better funding 5 - 3 - 4 6. Providing Innovative Solutions 4 5 3 - - *Total 27 22 12 11 4 Though it is very business specific to choose from any particular funding style, still as a result of this study it can be ascertained that best type of available funding can be ranked as Venture Capitalist at the first slot and Angel Investors, Conventional Capital sources at next subsequent slots. *highest total is best type in lean time 37 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  38. 38. 38 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  39. 39. ▶ To fund a startup venture in recession take notice the following points: ⊲ Consider market research and prepare a business analysis and projection report. ⊲ Estimate cost and expansion plans for few years. ⊲ Plan to pay back investors and formulate exit strategy. ⊲ Decide about Management leadership. ⊲ Adapt proven and functional, financial and operational controls. ⊲ Care about environment, Give back to nature by “Going Green” that is buzz for getting favorable credit to the company. ⊲ Innovative product requires greater awareness to create market. Hence research well and promote exhaustively to garner greater returns. ⊲ For any idea to be successful funding is not the constraint, It is all about promoting it well to grow and prosper. Funders always look for something that works. 39 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  40. 40. ▶ Following is the list of links utilized in this study ▶ In strategy and challenges 1) http://www.financialexpress.com/news/online-shopping-is-recessionproof-in-india/463054/ 2) http://abodesindia.wordpress.com/2009/07/20/venture-capital-investments-down-250-in-first-half/feed 3) http://www.siliconindia.com/shownews/18_Billion_VC_investment_flows_to_Indias_healthcare_-nid-58430.html 4) http://books.google.co.in/books?id=XvemScn2vkYC&pg=PA105&lpg=PA105&dq=scalability+&+VC+investment&source=bl&ots=3rHZ7LVu1z&s ig=i4t6a8Su5ZPrVODlr1b7HAZtC9Q&hl=en&ei=rrqYSqCvOpfO6QOun5TQBA&sa=X&oi=book_result&ct=result&resnum=4 5) http://books.google.co.in/books?id=XvemScn2vkYC&pg=PA105&lpg=PA105&dq=scalability+&+VC+investment&source=bl&ots=3rHZ7LVu1z&s ig=i4t6a8Su5ZPrVODlr1b7HAZtC9Q&hl=en&ei=rrqYSqCvOpfO6QOun5TQBA&sa=X&oi=book_result&ct=result&resnum=4 6) http://work911.com/planningmaster/planningarticles/busfailure8traps.htm 7) http://economictimes.indiatimes.com/News/News-By-Company/Corporate-Trends/Team-not-VC-gives-wings-to-a- startup/articleshow/4452547.cms 8) http://www.thehindubusinessline.com/manager/2009/02/02/stories/2009020250291000.htm 9) http://designofbusiness.blogspot.com/ 10) http://economictimes.indiatimes.com/News/News-By-Company/Corporate-Trends/Team-not-VC-gives-wings-to-a- startup/articleshow/4452547.cms 11) http://www.mba.co.za/article.aspx?rootid=6&subdirectoryid=1333 12) http://www.mba.co.za/article.aspx?rootid=6&subdirectoryid=1333 13) http://www.easimedia.com/hints,_tips_and_reports/finance/financial_management_:_your_business/ 14) http://www.allbusiness.com/banking-finance/financial-markets-investing/11742312-1.html 15) http://www.examiner.com/x-13111-Allentown-Startup-Business-Examiner~y2009m7d8-Coordinate-services-legal-finance-and-human- resources-for-startup-operational-efficiency 16) http://books.google.com/books?id=J_gFlK5kSeEC&pg=PA18&lpg=PA18&dq=control+of+finance+for+investors&source=bl&ots=4efd154hNf&si g=ZgvT58C2JMKWl6sbnJvzGe6PaEs&hl=en&ei=FLWaSqn0BpOWkQW7wryrAg&sa=X&oi=book_result&ct=result&resnum=9 17) http://icf.som.yale.edu/pdf/seminar03-04/publicv3.pdf 18) http://cleantech.com/about/pressreleases/010609.cfm 19) http://www.onphilanthropy.com/site/News2?page=NewsArticle&id=5560 20) http://corporate.recyclebank.com/press/coverage/76-venture-capitals-favorite-startups- 21) http://books.google.com/books?id=J_gFlK5kSeEC&pg=PA18&lpg=PA18&dq=control+of+finance+for+investors&source=bl&ots=4efd154hNf&si g=ZgvT58C2JMKWl6sbnJvzGe6PaEs&hl=en&ei=FLWaSqn0BpOWkQW7wryrAg&sa=X&oi=book_result&ct=result&resnum=9 40 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  41. 41. ▶ Following is the list of links utilized in this study ▶ In Recession proof sectors: ⊲ http://www.tworkshb.com/the-business-sectors-that-are-recession-proof/ ⊲ http://www.businessreviewonline.com/os/archives/2009/01/what_are_the_10.html ⊲ http://www.businesswings.co.uk/articles/Recession-proof-industries ⊲ http://en.wikipedia.org/wiki/Open_source_software ⊲ http://en.wikipedia.org/wiki/Cloud_computing ⊲ http://blogs.watoday.com.au/executive-style/managementline/2009/07/27/healthcareand.html ⊲ http://en.wikipedia.org/wiki/Biotechnology ⊲ https://www.pwcmoneytree.com/MTPublic/ns/moneytree/filesource/exhibits/09Q2MTPressRelease_FINAL.pdf ⊲ http://green.venturebeat.com/2009/07/29/cleantech-investing-surges-73-percent-in-q2-after-gloomy-q1/?obref=obinsite ⊲ http://www.google.com/hostednews/ap/article/ALeqM5jJa51lA26pRO8TOnd2F5GKh7rdtgD99O6L6G1 ⊲ http://edurev.com/blog/2008/01/14/the-best-place-to-invest-your-money-isonline-learning/ ⊲ http://www.masshightech.com/stories/2009/08/10/weekly9-Life-sciences-startups-launching-despite-recession.html ⊲ http://www.onflex.org/ted/2006/10/venture-capital-101.php ⊲ http://www.smallbusinessnotes.com/financing/venturecapitaldecisions.html ⊲ http://www.inc.com/magazine/19990301/741.html ⊲ http://www.indiavca.org/ven_business_plans.aspx ⊲ http://www.1000ventures.com/presentations/iquity_exit.html ▶ Ownership & Governance ⊲ http://www.pluggd.in/entrepreneurship/should-indian-startups-really-delineate-ownership-and-management-938/ ⊲ http://work911.com/planningmaster/planningarticles/busfailure8traps.htm 41 Copyright © Zenesys & Kuber Professional Services Training & Consulting
  42. 42. Final Presentation on Securing Funding in lean times for a start up venture. For Zenesys Consulting Batch July 2009 From Team-3-Mates  Shubhrangshu Barman Roy  Vijaykumar Ramalingam  Shubhanshu Gupta  Sourabh Maggo 42 Copyright © Zenesys & Kuber Professional Services Training & Consulting
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