Finance for Startups                Martin van Wunnik                 Xavier Corman20/02/2013        Xavier Corman | Marti...
Sponsors20/02/2013   Xavier Corman | Martin van Wunnik   2
Finance for Startups             • Introduction             •   Company Setup             •   Accounting             •   F...
Who are we ?             Martin van Wunnik             Xavier Corman20/02/2013                       Xavier Corman | Marti...
This presentation is available for free:              http://www.slideshare.net/XavierCorman             http://www.slides...
Creativity               level        Finance & Accounting        level20/02/2013          Xavier Corman | Martin van Wunn...
Creativity level                 Reality check              Funding  Value ?  Investments, Costs, Revenues, Ca           ...
Creativity level                    1.000 EUR                     21% VAT             (quarterly or monthly refund        ...
Why Finance for Startups ?             If you dont think about the future,                    you cannot have one.        ...
CASH 20/02/2013   Xavier Corman | Martin van Wunnik   10
Company Setup                 » Why should I ?                 » Capital                 » Hats/Personalities20/02/2013   ...
Why should I ?                      Limit your liabilities !                         Professional touch                   ...
Minimum capital                                   Legal                           BVBA-SPRL (min.1)                       ...
Shareholders  Control (>51%)                            Absolute / Relative majority                                     ...
Hats/Personalities                     Founders – Shareholders         Founders:                              (Board)     ...
Accounting: notions             • Balance Sheet – Bilan – Balans             • Profit & Loss – Compte de résultat – Winst-...
Accounting: Balance Sheet                    ACTIVE                                   PASSIVE                             ...
Accounting: Profit & Loss (P&L)                                             COGS (Cost of Sales)                          ...
Financial PlanContent      – Assumptions      – Profit & Loss      – Balance Sheet / Investment      – Cash-Flow -> Cash n...
Financial Plan in 10 min• Don’t waste your time in developing a huge  financial plan before to be sure that your  project ...
Financial Plan in 10 min /questions                  What are your revenues ?                    What are your costs ?    ...
Financial Plan / Prerequisites &                      Assumptions• Financial plan for 3 to 5 years• Monthly or Quarterly b...
Financial Plan / Tips for assumptions• Office: 25 m²/person• Price of offices: EUR 150/m²/year + 15 % for  maintenance• In...
Financial Plan / Profit & Loss      Revenues (Sales…)                    COGS (Cost of Sales)                   General Ex...
Financial Plan / Investments              List all your scheduled investments                                   YEAR 1    ...
Required Cash-Flow20/02/2013       Xavier Corman | Martin van Wunnik   26
Funding             Some remarks             Principles             Options20/02/2013      Xavier Corman | Martin van Wunn...
Funding, ‘Financing’    And entrepreneurs? They seem to have confused the definition of    entrepreneurship altogether.   ...
http://www.ideaowl.com/blog/2011/06/microconf-2011-3-surprises-                                  and-learnings-from-best-c...
Interest – Returns             100  102 Bank             100  0..1000 Stock market                    100  100 F.F.F.  ...
100+7=107 Bank             Principal & Interest              Able to pay back over time              Guarantees20/02/201...
20/02/2013   Xavier Corman | Martin van Wunnik   32
Valuation• The value of any business is the present value  of the future income stream• You sell future virtual profits fo...
Valuation                                                                       Exit Money                Sweat Money     ...
Valuation - What is dilution ?20/02/2013        Xavier Corman | Martin van Wunnik   35
Questions & Answers                                                          Free download :                              ...
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Finance for startups - 2013 kick-off

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The 5 basic financial concepts every entrepreneur should know.

Start or continue your startup activities in 2013 by gaining some relevant financial concepts during a 1½ hour interactive session, where we shall openly talk about the following topics:

* Company setup

* Accounting

* Financial Plan

* Funding your startup

* Valuation/Dilution

http://www.meetup.com/Finance-for-Startups/events/101587782/

Published in: Economy & Finance
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  • Introduction2 : 00:05-00:10 - Xavier
  • Introduction2 : 00:05-00:10 – XavierMake profit.Value PropositionCore BusinessDetails can cost money
  • Accounting: 00:25-00:30 – XavierAs the future CEO, Chairman or simply shareholder of your company, you need some knowledge about accounting. Today, I will show you in 10 minutes the logic behind accounting and I will try to convince you that accounting is the first financial tool to manage your company.
  • Accounting: 00:30-00:35 - XavierBalance Sheet is a picture of what your company own and how your company financed all its assets.
  • Accounting: 00:35-00:40 - XavierYou have on your left all the revenues of your company.On the right, all the spending.The Blue is the purpose of your business: PROFIT
  • Financial Plan : 00:40-00:42 - XavierDon’t start with details. Go to the important figures.
  • Financial Plan : 00:43-00:44 - Xavier
  • Financial Plan : 00:45-00:46 - Xavier
  • Financial Plan : 00:47-00:48 - Xavier
  • Financial Plan : 00:49-00:50 – XavierHow many square meter you need per person ?Who knows the price per square meter of offices in Brussels ?
  • Financial Plan : 00:51-00:52 - Xavier
  • Financial Plan : 00:53-00:54 - Xavier
  • Financial Plan : 00:54-00:55 - XavierNext: MARTIN
  • Funding : 00:55-01:10 - MartinFriends Family and FoolsNext: LEO
  • Valuation : 01:10-01:15 - Xavier
  • Valuation : 01:15-01:20 - XavierConvertibles bonds, sharelholder’s agreement, made-to-measure
  • Valuation : 01:20-01:25 – XavierNext: MartinNow, you have to convince yourself, your partners and business angels to invest in your project
  • Q&A – 01:30-01:45 – Xavier & Martin
  • Finance for startups - 2013 kick-off

    1. 1. Finance for Startups Martin van Wunnik Xavier Corman20/02/2013 Xavier Corman | Martin van Wunnik 1
    2. 2. Sponsors20/02/2013 Xavier Corman | Martin van Wunnik 2
    3. 3. Finance for Startups • Introduction • Company Setup • Accounting • Financial Plan • Funding your startup • Valuation / Dilution • Q&A20/02/2013 Xavier Corman | Martin van Wunnik 3
    4. 4. Who are we ? Martin van Wunnik Xavier Corman20/02/2013 Xavier Corman | Martin van Wunnik 4
    5. 5. This presentation is available for free: http://www.slideshare.net/XavierCorman http://www.slideshare.net/FinanceCoach2420/02/2013 Xavier Corman | Martin van Wunnik 5
    6. 6. Creativity level Finance & Accounting level20/02/2013 Xavier Corman | Martin van Wunnik 6
    7. 7. Creativity level Reality check Funding  Value ? Investments, Costs, Revenues, Ca sh Financial Plan & Elevator pitch Organization/Company Finance & Accounting Team/Partners level20/02/2013 Xavier Corman | Martin van Wunnik 7 7
    8. 8. Creativity level 1.000 EUR 21% VAT (quarterly or monthly refund request/compensation) Investments  Cash out: 1.210 EUR Cash in: 210 EUR (>3m) Profit impact: 200 EUR over 5y Cost  Cash out: 1.210 EUR Cash in: 210 EUR (>3m) Profit impact: 1.000 EUR Discounted Cash Flows Finance & Accounting level20/02/2013 Xavier Corman | Martin van Wunnik 8
    9. 9. Why Finance for Startups ? If you dont think about the future, you cannot have one. John Golsworthy where you want to go You need to know how you are supposed to go20/02/2013 Xavier Corman | Martin van Wunnik 9
    10. 10. CASH 20/02/2013 Xavier Corman | Martin van Wunnik 10
    11. 11. Company Setup » Why should I ? » Capital » Hats/Personalities20/02/2013 Xavier Corman | Martin van Wunnik 11 11
    12. 12. Why should I ? Limit your liabilities ! Professional touch Fiscal 34% (24% for 3y) Succession ... Formalities & some costs (bank, notary, KBO/CBE, social secretary) Double entry accounting Revisor for in-natura contributions20/02/2013 Xavier Corman | Martin van Wunnik 12 12
    13. 13. Minimum capital Legal BVBA-SPRL (min.1) CVBA-SCRL (flexible) 18.550 EUR  6.200 EUR (or 12.400 EUR) SA-NV (min.2): 61.500 EUR REAL minimum = Business required !20/02/2013 Xavier Corman | Martin van Wunnik 13 13
    14. 14. Shareholders  Control (>51%) Absolute / Relative majority 40% - 60% 40% - 10% - 10% -10% -10% -10% -10% Voting Rights Class A & B Minority (blocking) interest Investors per phase (dilution)! Stock options: fiscal implications, buyer required vesting conditions : targets, period (4y)20/02/2013 Xavier Corman | Martin van Wunnik 14 14
    15. 15. Hats/Personalities Founders – Shareholders Founders: (Board) 3 years responsibility Owners CEO (gérant/zaakvoerder) General Manager Directors CxO Employees20/02/2013 Xavier Corman | Martin van Wunnik 15 15
    16. 16. Accounting: notions • Balance Sheet – Bilan – Balans • Profit & Loss – Compte de résultat – Winst-en Verliesrekening • Cash-flow – Trésorerie – Schatkist • Financial Plan – Plan financier – Financieel Plan20/02/2013 Xavier Corman | Martin van Wunnik 16
    17. 17. Accounting: Balance Sheet ACTIVE PASSIVE Equity (Capital/Kapitaal) Non Current Assets (Actifs Immobilisés/ Vast Activa) LT Debts Current Assets (Actifs circulants/ Vlottend Activa) ST Debts20/02/2013 Xavier Corman | Martin van Wunnik 17
    18. 18. Accounting: Profit & Loss (P&L) COGS (Cost of Sales) Personnel Costs Gross margin General Expenditures Revenues (Sales…) Added Value Depreciation EBITDA Financial cost Profit20/02/2013 Xavier Corman | Martin van Wunnik 18
    19. 19. Financial PlanContent – Assumptions – Profit & Loss – Balance Sheet / Investment – Cash-Flow -> Cash needed – Valuation of the project – Profitability / return of the project20/02/2013 Xavier Corman | Martin van Wunnik 19
    20. 20. Financial Plan in 10 min• Don’t waste your time in developing a huge financial plan before to be sure that your project is viable !• In many case, in less than 10 minutes, you can see if your idea worth something.• How to make a very quick financial plan ?20/02/2013 Xavier Corman | Martin van Wunnik 20
    21. 21. Financial Plan in 10 min /questions What are your revenues ? What are your costs ? What are your investments ? How many persons for your project ?20/02/2013 Xavier Corman | Martin van Wunnik 21
    22. 22. Financial Plan / Prerequisites & Assumptions• Financial plan for 3 to 5 years• Monthly or Quarterly base• Excel or Calc is your friend• Start by listing your main assumptions20/02/2013 Xavier Corman | Martin van Wunnik 22
    23. 23. Financial Plan / Tips for assumptions• Office: 25 m²/person• Price of offices: EUR 150/m²/year + 15 % for maintenance• Insurances: 1 % of revenues• Marketing: define a % of revenues + starting investment• Don’t forget lawyers, accountant, social secretary, office supplies…20/02/2013 Xavier Corman | Martin van Wunnik 23
    24. 24. Financial Plan / Profit & Loss Revenues (Sales…) COGS (Cost of Sales) General Expenditures COSTS Personnel Costs Financial cost Depreciation CASH CASH-FLOW IF NEGATIVE DRAIN Profit20/02/2013 Xavier Corman | Martin van Wunnik 24
    25. 25. Financial Plan / Investments List all your scheduled investments YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 520/02/2013 Xavier Corman | Martin van Wunnik 25
    26. 26. Required Cash-Flow20/02/2013 Xavier Corman | Martin van Wunnik 26
    27. 27. Funding Some remarks Principles Options20/02/2013 Xavier Corman | Martin van Wunnik 27 27
    28. 28. Funding, ‘Financing’ And entrepreneurs? They seem to have confused the definition of entrepreneurship altogether. Entrepreneurship, they mistakenly believe, equals financing! This is wrong. Over 99% of entrepreneurs who seek funding get rejected. Yet, the entire world is focused on the 1% that is "fundable." http://www.readwriteweb.com/start/2012/01/the-other-99-of-entrepreneurs.php20/02/2013 Xavier Corman | Martin van Wunnik 28 28
    29. 29. http://www.ideaowl.com/blog/2011/06/microconf-2011-3-surprises- and-learnings-from-best-conference-ever/20/02/2013 Xavier Corman | Martin van Wunnik 29
    30. 30. Interest – Returns 100  102 Bank 100  0..1000 Stock market 100  100 F.F.F. 100  107 Bank 100  130 BA / VC20/02/2013 Xavier Corman | Martin van Wunnik 30 30
    31. 31. 100+7=107 Bank Principal & Interest  Able to pay back over time  Guarantees20/02/2013 Xavier Corman | Martin van Wunnik 31 31
    32. 32. 20/02/2013 Xavier Corman | Martin van Wunnik 32
    33. 33. Valuation• The value of any business is the present value of the future income stream• You sell future virtual profits for present real money20/02/2013 Xavier Corman | Martin van Wunnik 33
    34. 34. Valuation Exit Money Sweat Money Year 1 Year 2 Year 3 Year 4 Year 5 Year 620/02/2013 Xavier Corman | Martin van Wunnik 34
    35. 35. Valuation - What is dilution ?20/02/2013 Xavier Corman | Martin van Wunnik 35
    36. 36. Questions & Answers Free download : http://www.slideshare.net/XavierCorman http://www.slideshare.net/FinanceCoach2420/02/2013 Xavier Corman | Martin van Wunnik 36

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