Finance for Startups                 Xavier Corman16/03/201307/02/2012        Xavier Corman | Martin van Wunnik           ...
Finance for Startups             • Introduction             •   Company Setup             •   Accounting             •   F...
Who I am ?             Xavier Corman16/03/201307/02/2012                   Xavier Corman | Martin van Wunnik              ...
This presentation is available for free:             http://www.slideshare.net/xaviercorman16/03/201307/02/2012           ...
Why Finance for Startups ?             If you dont think about the future,                    you cannot have one.        ...
Company Setup16/03/201307/02/2012     Xavier Corman | Martin van Wunnik                         Xavier Corman             ...
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 100/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-Flow16/03/201307/02/2012       Xavier Corman | Martin van Wunnik                           Xavier Corman    ...
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...
How to finance your start-up ?  Clients                                                                         FFF Suppli...
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 ? 100%              15%         20%  90%                                              25%  80...
Questions & Answers                                                            Free download:                             ...
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Finance for startup | Presentation @ 8e Colloque des Clubs Etudiants Entrepreneurs

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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’tstartwithdetails. 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 startup | Presentation @ 8e Colloque des Clubs Etudiants Entrepreneurs

    1. 1. Finance for Startups Xavier Corman16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 1
    2. 2. Finance for Startups • Introduction • Company Setup • Accounting • Financial Plan • Funding your startup • Valuation / Dilution16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 2
    3. 3. Who I am ? Xavier Corman16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 3
    4. 4. This presentation is available for free: http://www.slideshare.net/xaviercorman16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 4
    5. 5. 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 go16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 5
    6. 6. Company Setup16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 6 6
    7. 7. Why should I ? Limit your liabilities ! Professional touch Fiscal 34% Succession ... Formalities & some costs (bank, notary, KBO/CBE, social secretary) Double entry accounting Revisor for in-natura contributions16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 7 7
    8. 8. 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 !16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 8 8
    9. 9. 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)16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 9 9
    10. 10. Hats/Personalities Founders – Shareholders Founders: (Board) 3 years responsibility Owners CEO (gérant/zaakvoerder) General Manager Directors CxO Employees16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 10 10
    11. 11. Accounting: notions • Balance Sheet – Bilan – Balans • Profit & Loss – Compte de résultat – Winst-en Verliesrekening • Cash-flow – Trésorerie – Schatkist • Financial Plan – Plan financier – Financieel Plan16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 11
    12. 12. Accounting: Balance Sheet ACTIVE PASSIVE Equity (Capital/Kapitaal) Non Current Assets (Actifs Immobilisés/ Vast Activa) LT Debts Current Assets (Actifs circulants/ Vlottend Activa) ST Debts16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 12
    13. 13. Accounting: Profit & Loss (P&L) COGS (Cost of Sales) Personnel Costs Gross margin General Expenditures Revenues (Sales…) Added Value Depreciation EBITDA Financial cost Profit16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 13
    14. 14. Financial PlanContent – Assumptions – Profit & Loss – Balance Sheet / Investment – Cash-Flow -> Cash needed – Valuation of the project – Profitability / return of the project16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 14
    15. 15. 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 ?16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 15
    16. 16. Financial Plan in 10 min /questions What are your revenues ? What are your costs ? What are your investments ? How many persons for your project ?16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 16
    17. 17. 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 assumptions16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 17
    18. 18. Financial Plan / Tips for assumptions• Office: 25 m²/person• Price of offices: EUR 100/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…16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 18
    19. 19. Financial Plan / Profit & Loss Revenues (Sales…) COGS (Cost of Sales) General Expenditures COSTS Personnel Costs Financial cost Depreciation CASH CASH-FLOW IF NEGATIVE DRAIN Profit16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 19
    20. 20. Financial Plan / Investments List all your scheduled investments YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 516/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 20
    21. 21. Required Cash-Flow16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 21
    22. 22. 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.php16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 22 22
    23. 23. http://www.ideaowl.com/blog/2011/06/microconf-2011-3-surprises- and-learnings-from-best-conference-ever/16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 23
    24. 24. How to finance your start-up ? Clients FFF Suppliers BA Banks VCShareholders Crowd Equity LT Debts ST Debts Public Banks Shareholders 16/03/2013 07/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 24
    25. 25. Valuation• The value of any business is the present value of the future income stream• You sell future virtual profits for present real money16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 25
    26. 26. Valuation Exit Money Sweat Money Year 1 Year 2 Year 3 Year 4 Year 5 Year 616/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 26
    27. 27. Valuation - What is dilution ? 100% 15% 20% 90% 25% 80% 12% 70% 15% VC 2 60% 9% VC 1 50% 85% BA 40% 68% Founder(s) 30% 51% 20% 10% 0% Start 1st Round 2nd Round16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 27
    28. 28. Questions & Answers Free download: http://www.slideshare.net/xavierCorman16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 28

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