The TOP 5 reasons why an investor will NOT invest in your startup

Finance workshop The top 5 reasons why an investor will NOT invest in your startup Martin van Wunnik Xavier Corman Vladimir Blagojević19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 1

Who are we ? Martin van Wunnik Xavier Corman Vladimir Blagojević19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 2

This presentation is available for free: http://www.slideshare.net/xaviercorman http://www.slideshare.net/FinanceCoach24 http://www.slideshare.net/VladimirBlagojevic19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 3

http://www.ideaowl.com/blog/2011/06/microconf-2011-3-surprises- and-learnings-from-best-conference-ever/19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 4

Investor’s motivations 1. Team 2. Business model 3. Scalability 4. ROI 5. Exit strategy19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 5

Team Marketing Sales CEO Technical Operational19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 6

Business model19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 7

Business model“How will you make money ?”Tech startup: Your product is only 1/3 !Freemium (« build a community »)Burn rate, cash crunch, « valley of death » 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 8

Required Cash-Flow19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 9

A Scalable BusinessChecklist@VladBlagi10steps2.com Get your innovations funded 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 10

WHAT ARE YOU BUILDING?19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 11 10steps2.com

19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 12

WHAT IS YOUR INVESTOR THINKING ABOUT?19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 13

YOU ARE BUILDING A MONEY MAKING MACHINE19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 14

Who is buying? Why are youHow will you worth buying?make money? Why are you different? How will you 19/09/2012 reach Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 15 customers?

AND IT’S GOT TO BE SCALABLE19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 16

Easy to deliver Big, growing market of buyers Easy to sell Unfair advantage Repeatable Scalable business growth engine19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 17

10 STEPS TO A SCALABLE BUSINESS A free course at 10steps2.com19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 18 10steps2.com

ROI = Return on Investment Bank loan 100 + 12 = 112 Principal & Interest  Able to pay back over time  Guarantees19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 19

100 122 50619/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 20

19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 21

www.impulse.de weighted average cost of capital (WACC) Cost of Equity (Re) = Rf + Beta (Rm-Rf). After-tax cost of debt 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 22

Exit Strategy A business angel is a wealthy individual who invests in a startup company with his or her own money with the aim of achieving a financial return through capital gain at exit. VC/IPO VC BA FFF YOUNo STRATEGY to the next step => NO INVESTOR !19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 23

How to finance your start-up ? Clients FFF Suppliers BA Banks VCShareholders Crowd Equity LT Debts ST Debts Public Banks Shareholders 19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 24

Q&A19/09/2012 Xavier Corman | Martin | Martin van|Wunnik Blagojević Xavier Corman van Wunnik Vladimir 25

The TOP 5 reasons why an investor will NOT invest in your startup

by Xavier Corman on Sep 20, 2012

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