Bootstrapping
An alternative to funding
Author : Eva hukshorn, partner EFactor
1. EFactor is a Smart Network that matches entrepreneurs with the very people
who can help them grow
2. Finding Business P...
Some Basic Ingredients To Start a Successful Company
• An average idea takes 9 - 12month from creation to business plan.
•...
Typical life cycle of a High Content Growth Startup
IDEA PROTO TYPE LAUNCH GROWTH
HIGH
RISK
LOW
RISK
PRE - SEED
SEED
EARLY...
An Overview of Funding Providers Active in Each of the Stages
PRE-SEED & SEED
CAPITAL
USD 0 – 1.5 mio
• Friend Family &
Fo...
What Kind of Funding do These Funding Providers Give?
1. Debt/Loan
Funding external parties
without ownership + fee:
• Per...
So Why Bootstrap?
• 85% of ideas do not start-up.
• 50% of the startups are not alive after 5 years
• On average it takes ...
Bootstrapping : What is It?
Achieving as much as possible with
as little money as possible
1. Funding from own funds & FFF...
Bootstrapping : Why do It?
1. Creating Value
2. Knowledge and asset ownership remains internal
3. Reducing risk
4. Remain ...
BOOTSTRAPPING - CASESTUDY
SYMBID:DUTCH EQUITY BASED CROWDFUNDING PLATFORM
• Total Value Platform Eur 2.046.000
USD 2.7 mio...
BOOTSTRAPPING - CASESTUDY
SYMBID:DUTCH EQUITY BASED CROWDFUNDING PLATFORM
PARTNER WHAT VALUE SYMBID PAID:
Accountant 500 h...
BOOTSTRAPPING - CASESTUDY
SYMBID:DUTCH EQUITY BASED CROWDFUNDING PLATFORM
• Total Value Platform Eur 2.046.000
USD 2.7 mio...
Bootstrapping : Why do It?
1. Preparation is the key
2. Solid business model
3. Account smart
4. No cash out flow unless n...
Visit Now
http://www.efactor.com/
https://www.facebook.com/efactor
http://www.twitter.com/efactor
This document was prepared by Eva Hukshorn. Several people and organizations have
inspired her to write this presentation,...
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Bootstrapping - An Alternative to Funding

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EFactor is your online destination for all things entrepreneurial.
Find funding, get advice, expand your network, and watch your business grow!

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Bootstrapping - An Alternative to Funding

  1. 1. Bootstrapping An alternative to funding Author : Eva hukshorn, partner EFactor
  2. 2. 1. EFactor is a Smart Network that matches entrepreneurs with the very people who can help them grow 2. Finding Business Partners: from partners to investors, from coaches to customers 3. Largest Entrepreneurial Network in the World with 1mio members in 185 countries. 4. An online community Offering you a network, knowledge, events, and every business resources you need to succeed @ discount! 5. GO Online, fix your personal profile & company profile and get MATCHED!
  3. 3. Some Basic Ingredients To Start a Successful Company • An average idea takes 9 - 12month from creation to business plan. • Most successful start-ups consist of 3 partners • You start with money. You end with money. And then there is money in between.
  4. 4. Typical life cycle of a High Content Growth Startup IDEA PROTO TYPE LAUNCH GROWTH HIGH RISK LOW RISK PRE - SEED SEED EARLY & LATER-STAGE/ GROWTH IPO/ EXIT CAPITAL DEFINITIONS
  5. 5. An Overview of Funding Providers Active in Each of the Stages PRE-SEED & SEED CAPITAL USD 0 – 1.5 mio • Friend Family & Fools •Grant Funding • University Loan •Angel Investors •Crowdfunding •Bootstapping •Competitions •Incubators EARLY & LATER STAGE / GROWTH CAPITAL USD 1 – 20 mio • (Syndicate of) Angel investors •Venture Capital •Private Equity •Commercial Bank IPO / EXIT USD 25mio + • Venture Capital •Private Equity •Commercial Banks •Hedge Funds •Public Market / Stock Exchange HIGH RISK LOW RISK
  6. 6. What Kind of Funding do These Funding Providers Give? 1. Debt/Loan Funding external parties without ownership + fee: • Personal Loan • Bank Loan • Convertible debt • Mortgages • Et cetera 2. Equity Funding external parties without ownership : • Common • Preferred • Mezzanine 3. Debt/Loan Funding through own resources • Income • Savings • Revenue • Friends, Family & Fools • Angel Investors • Peer ‐2 – Peer Crowd funding • Commercial Banks • Friends, Family & Fools • Incubators • Equity-Based Crowdfunding • Angel Investors • Venture Capital • Private Equity • Income & Savings • Revenue • Friends, Family & Fools • Pre-Sale/ Donation • Crowdfunding • Grant Funding • University Funds • Competitions
  7. 7. So Why Bootstrap? • 85% of ideas do not start-up. • 50% of the startups are not alive after 5 years • On average it takes 3.8x companies to be successful • Less then 10% of the startups get funded with equity: – 0.03% venture capital / 2% by informal investors – It takes 1.5 years, 32 versions of your business plan and speaking to 20 investors at least 3 times. • 65% of entrepreneurs have personal loans • 55% of startups with Angel Funding will get Venture Capital Funding compared to 10% with no Angel Funding will get Venture Capital Funding. • 1 to 100 companies having a meeting with Venture Capital gets funded.
  8. 8. Bootstrapping : What is It? Achieving as much as possible with as little money as possible 1. Funding from own funds & FFF. 2. Organic growth through revenue. 3. Business type: services / consulting 4. Lean & Mean 5. Delays in Development
  9. 9. Bootstrapping : Why do It? 1. Creating Value 2. Knowledge and asset ownership remains internal 3. Reducing risk 4. Remain in the drivers’ seat 5. How many options do you think you have?
  10. 10. BOOTSTRAPPING - CASESTUDY SYMBID:DUTCH EQUITY BASED CROWDFUNDING PLATFORM • Total Value Platform Eur 2.046.000 USD 2.7 mio • Cash Out Symbid Eur 176.000 USD 239k • Total Bootstrapping Profit Eur 1.864.00 USD 2.4 mio
  11. 11. BOOTSTRAPPING - CASESTUDY SYMBID:DUTCH EQUITY BASED CROWDFUNDING PLATFORM PARTNER WHAT VALUE SYMBID PAID: Accountant 500 hours of advice (280 EUR/hour) EUR 140.000 EUR0 Lawyer 175 hours of advice (280 EUR/hour) EUR 50.000 EUR 20.000 Technology Shareholder India mockup on western Standards EUR 250.000 EUR 150.000 Marketing Affiliate Model, Social Media, Free Publicity EUR 500.000 EUR 5.000 Team No Salary EUR 600.000 EUR 0 Advisors Investors Celebrities + Specialists @ discount if next investor at higher price EUR 500.000 EUR 1.000 (2 dinners)
  12. 12. BOOTSTRAPPING - CASESTUDY SYMBID:DUTCH EQUITY BASED CROWDFUNDING PLATFORM • Total Value Platform Eur 2.046.000 USD 2.7 mio • Cash Out Symbid Eur 176.000 USD 239k • Total Bootstrapping Profit Eur 1.864.00 USD 2.4 mio
  13. 13. Bootstrapping : Why do It? 1. Preparation is the key 2. Solid business model 3. Account smart 4. No cash out flow unless necessary 8 7 6 5 Low hanging fruits first Leverage yourself Leverage everything you know Everyone & everything is marketing
  14. 14. Visit Now http://www.efactor.com/ https://www.facebook.com/efactor http://www.twitter.com/efactor
  15. 15. This document was prepared by Eva Hukshorn. Several people and organizations have inspired her to write this presentation, amongst which are, but not limited to the Founders of EFactor, ABN AMRO/RBS, University of Groningen, Institute for Management Accountants, Paul Grant Founder of the Funding Game Thank You!

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