About 38% of startup company fails within 3 years due to lake of funding. Funding a startup is critical at every stage be it as seed fund such as raising initial fund from friends and families, or angel investments, even at the later stages of series A, series B etc., funding to attract talent, accelerate the growth, capture international market, when the growth is stable, looking for timing and opportunity to become publish company or choose to merge with large enterprise with win-win synergy. This was the presentation given to students at PSG - Coimbatore

1. Fueling your startup

3. Why this
topic is
important ?

4. Life Cycle
Start-up is a company undertaken by an entrepreneur to seek, develop, and validate a
scalable business model

5. Funding your startup
Bootstrapping
Angel
Investment
VC
Funding
Startup
Valuation
Exit Strategy

6. Bootstrapping

7. Angel Investor
• A Wealthy Individual interested in
your idea and ROI
• Many angels are successful
entrepreneurs, you can expect
connections and sound advice
• You can expect 1 lack to 10 Lacks
Caution:
• You may loose decision making
power

8. VC FUNDING : SERIES A
ACCELERATE COMPANY
GROWTH
ATTRACTING NEW TALENT CROSS PRODUCT
MILESTONES

9. VC FUNDING : SERIES B, C, D..
GROWTH CAPITAL FOR VIRAL
GROWTH OVER A LONG
PERIOD
RAPID CUSTOMERS GROWTH,
EXPECTED REVENUE GROWTH
, PROFITABILITY
$20M - $1OOM
FUNDING NEED
> $250M - VALUATION

10. Ready with a plan, before you ask for fund
Problem Solution Why you
Market Size
Financial
Projection
ASK

11. Business Model Canvas

12. It’s determined by market..
What is your company’s worth?

13. Stages Funding Basis Funding Size Valuation Size Funding Source
Ideation Idea Attraction
And Market size
$25k – $100k $250K to $500k Bootstrap, F & F ,Angel/
Seed Funds
Validation Execution Capability of
founders
$100k - $250 $500k to 1.5M Bootstrap, F & F ,Angel/
Seed Funds
Early Traction A successful working model
or product/service
$250k- $500k $2M- $5M Angel /Seed Funds
Scaling Customer Adoption, Cash
Flows
$1M - $5M $5M- $20M Angel/ Seed Funds/VC
Rapid Customer
Adoption
Market Share, Revenue
grow estimate
$5M - $20M > $50M Series A ( 1 to many VCs )
Growth Capital for
viral Growth over a
long period
Rapid Customers growth,
Expected Revenue Growth ,
Profitability
$20M - $1OOM > $250M Series (B,C,D,E.,)
PE firms and VCs will exit
Stable Growth Exit Strategy (IPO / Get Acquired )

14. Valuation
Methods
Discounted Cash
Flow (DCF)
Cost Approach
(to build or replace)
Comparable

15. DCF

16. • A Case Study - Uber Funding Rounds

17. Exit strategy

18. Thanks

19. The Ask
$50,000

20. Sample
financial
projection
StreamChain: 5 Year Projections
Year 1 Year 2 Year 3 Year 4 Year 5
New Wells Deployed 0 45 100 250 500
New Web Portal Licenses 0 3 10 25 50
Total Number of Employees 3 6 15 15 15
Revenue
Web Portal Licenses Sales -
$ -
$ 250,000.00
$ 625,000.00
$ 1,250,000.00
$
Hardware/Software Sales - - 750,000 1,500,000 3,000,000
- - $1,000,000 $2,125,000 $4,250,000
Variable Expenses
COGS 39,900 361,300 478,000 1,132,000 2,222,000
Gross Income ($39,900) ($361,300) $522,000 $993,000 $2,028,000
Fixed Expenses
Salaries and Wages - 240,000 900,000 900,000 900,000
Fixed Expenses (insurance,
Office, Hosting, Software
Service, Ongoing Legal)
20,000 100,000 100,000 100,000 100,000
Total Fixed Expenses 20,000 340,000 1,000,000 1,000,000 1,000,000
EBITDA ($59,900) ($701,300) ($478,000) ($7,000) $1,028,000
Total Revenue