Metamorph Consulting Group
Entrepreneurial Funding
Sources

• 1 Hour
• 3 Full Presentations Compressed
Presented by Metamorph Consulting
Group
save time & money today, empower for tomorrow

Metamorph Consulting Group is a tea...
Ways we can Help
• Training – Develop the Internal Capability to “Do it
Yourself”. Best Suited for Companies with Cash flo...
Today’s EFS Program
• Introduction
• FFF, AI & VC Funding
• Bootstrapping
• Crowdsourcing
• Summary

•

3 Slides of Shamel...
Legal Disclaimer

• We are not financial advisors.
• Recommend you seek financial advice before pursuing
any of the ideas ...
Business need money to grow

$

$$$$$
Why Do Businesses Seek Funding?
• 6% Export Activities
• 63% to cover Start-Up costs
• 7 % for R&D
• 24% to Buy new Equipm...
Business Financing
•Personal Financing

•Angel investors

•Friends family & fools

•Venture capitalists

•Bootstrapping

•...
Financing Life Cycle
How much money you get
• Family and Friends: (FFF) Invests before anyone else at
the lowest price. Typically $10-15k
• Ang...
When and How Much?
• Idea Stage –It’s an Idea you should seek $0 (You)
• Start-up – $100k Valuation you should seek $15k (...
What’s your business valuation?
• Basic Method
– P&E – (Plant & Equipment)
– EBPITD - (Earnings before proprietor drawings...
What do Investors look for?
• Risk vs. Return
• Action – That You’ve made progress
• An strong & executable plan
• Key Man...
How Metamorph can Help
• Strategic Planning, remove risk and develop a strong
executable plan.
• Leadership & Organisation...
More Info?
Google: #metabiz investor
Start a Conversation
#metabiz
What is Bootstrapping?

“To finance your company’s startup and
growth without the assistance of or input
from others”
POLL...
Who is it For?
•

Startups on a shoestring budget

•

Growing Businesses with stretched resources

•

Lean operations that...
What it’s Not

•

Magic Pill that will solve all your
financial/cashflow problems

•

Easy - It requires Discipline and Ef...
Advantages
•

Your business will be worth more because less money has been
borrowed, and therefore, no equity positions ha...
6 Sources of Bootstrap Finance
Trade credit for regular purchases
Factoring from Invoices
Customer Financing
Real Estate E...
•How the Apple I was born
•Steve Jobs Went to Byte Shop and got purchase order,
went to Crammer electronics and got parts ...
•
•
•

Latrobe Valley Based

Formed in 2001 by Darren Kelly & Lance Willis

Focused on developing long-term supplier relat...
Melbourne Based Manufacturer

•
•

•

Monique & Danielle Started on Personal Savings and in
2009
Won Multiple Design/Produ...
More Info?
Google: #metabiz bootstrapping
Start a Conversation
#metabiz
Crowdfunding
“Collective effort of individuals who network
& pool their money usually initiated via the
internet, to suppo...
Crowdfunding Basics
Is it Legitimate?
• Make up your own mind
• Massolution put out data showing the
overall crowdfunding industry has raised
...
2 Types of Crowdfunding
• Donation based funding
• Donate via collaborative goal process in return for products, perks or
...
Recent Scrutiny
• Funding of a company by selling small
amounts of equity to many investors.
• Scrutiny in the US
• Mentio...
What can be Crowdfunded?
• Disaster Relief
• Artistic Creation
• Political Campaigns
• Not-For Profit Initiatives
• Startu...
Top 10 Crowdfund Platforms
• Kickstarter

• Somolend

• Indiegogo

• appbackr

• Crowdfunder

• AngelList

• RocketHub

• ...
What’s your Network Worth?
• How much could you potentially raise?
• A. How many people are in your network
•

Social Medi...
Funding Catalysts
3rd Degree
3rd Degree
2nd Degree
2nd Degree
1ststDegree
1 Degree

Core
Core
Plan your Funding
Basic
$1K – 10K

Contributors
Campaign (days)
Time required (per day)

Campaign activity

Relationship w...
Review and Launch
How Metamorph can Help

• Strategic Planning, develop your Crowdsource strategy,
choose the right platform, develop the be...
More Info?
Google: #metabiz crowdfund
Start a Conversation
#metabiz
Government Grants
www.grantslink.gov.au
http://www.business.vic.gov.au
http://www.business.gov.au
More Info?
Google: #metabiz grants
Start a Conversation
#metabiz
Metamorph Services
• Business Intelligence & Data Analysis
• Strategic Planning & Innovation
• Asset Optimisation & Reliab...
Metamorph Consulting Group
Entrepreneurial Funding Sources for Australia
Entrepreneurial Funding Sources for Australia
Entrepreneurial Funding Sources for Australia
Entrepreneurial Funding Sources for Australia
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Entrepreneurial Funding Sources for Australia

  1. 1. Metamorph Consulting Group
  2. 2. Entrepreneurial Funding Sources • 1 Hour • 3 Full Presentations Compressed
  3. 3. Presented by Metamorph Consulting Group save time & money today, empower for tomorrow Metamorph Consulting Group is a team of Entrepreneurs, MBA’s and Engineers who work alongside Successful and Emerging Companies; we provide the Analytical, Technical and Strategic horsepower that's saves time and money from existing operations, and empowers businesses for a sustainable future.
  4. 4. Ways we can Help • Training – Develop the Internal Capability to “Do it Yourself”. Best Suited for Companies with Cash flow Restrictions or investing in staff development. • Collaboration – Additional Horsepower and augmented staff capability to “Do it Together”. • Outsource – Suited for Companies with limited resources or time constraints. “Do it for Me” approach means we do the heavy lifting, you get the benefits.
  5. 5. Today’s EFS Program • Introduction • FFF, AI & VC Funding • Bootstrapping • Crowdsourcing • Summary • 3 Slides of Shameless Self Promotion
  6. 6. Legal Disclaimer • We are not financial advisors. • Recommend you seek financial advice before pursuing any of the ideas presented in this online seminar
  7. 7. Business need money to grow $ $$$$$
  8. 8. Why Do Businesses Seek Funding? • 6% Export Activities • 63% to cover Start-Up costs • 7 % for R&D • 24% to Buy new Equipment POLL – Why do you need funding?
  9. 9. Business Financing •Personal Financing •Angel investors •Friends family & fools •Venture capitalists •Bootstrapping •Banks •Government grants •IPO •Friends family •Crowdfunding
  10. 10. Financing Life Cycle
  11. 11. How much money you get • Family and Friends: (FFF) Invests before anyone else at the lowest price. Typically $10-15k • Angel Investors: (AI) has at least $1,000,000 or $200,000 annually – is an accredited investor. Invests own money • Venture Capitalist: (VC) persuades others to put money into his fund. Invests that money, starting at $500,000 series A funding • Investment Banker: (IB) does IPO paperwork and sells a lot of stock, gets 7% of the whole IPO for it
  12. 12. When and How Much? • Idea Stage –It’s an Idea you should seek $0 (You) • Start-up – $100k Valuation you should seek $15k (FFF) • Seed Round –$1M Valuation you should seek $200k (AI) • Series A –$4M Valuation you should seek $2M (VC) • IPO –$2.6B Valuation you should seek $265M (IB)
  13. 13. What’s your business valuation? • Basic Method – P&E – (Plant & Equipment) – EBPITD - (Earnings before proprietor drawings, interest, tax & depreciation) – SaVP – (Stock at Valuation Price) $$$ = P&E + EBPITD + SaVP POLL – What’s your business worth?
  14. 14. What do Investors look for? • Risk vs. Return • Action – That You’ve made progress • An strong & executable plan • Key Management team members • A viable business model • A financial model & financing roadmap • Clean & Clear IP position
  15. 15. How Metamorph can Help • Strategic Planning, remove risk and develop a strong executable plan. • Leadership & Organisation Development, develop a recruitment strategy & development plan for staff. • Sustainable Competitive Advantage strategies to ensure IP is captured and exploited.
  16. 16. More Info? Google: #metabiz investor
  17. 17. Start a Conversation #metabiz
  18. 18. What is Bootstrapping? “To finance your company’s startup and growth without the assistance of or input from others” POLL: Who’s heard of bootstrapping?
  19. 19. Who is it For? • Startups on a shoestring budget • Growing Businesses with stretched resources • Lean operations that want to maintain equity stake • Bad Credit/No Credit Business in Early Development • Cashflow constrained businesses wanting to expand
  20. 20. What it’s Not • Magic Pill that will solve all your financial/cashflow problems • Easy - It requires Discipline and Effort • Something that only small businesses do
  21. 21. Advantages • Your business will be worth more because less money has been borrowed, and therefore, no equity positions had to be relinquished. • • • You won't have to pay the high interest on borrowed money. Coming from a stronger position (with less debt on hand), you look more desirable to external lenders and investors when the time does come to raise money through these routes. You can be creative in finding ways to raise profits, without having to look to external sources. It will give you the added confidence of business savvy.
  22. 22. 6 Sources of Bootstrap Finance Trade credit for regular purchases Factoring from Invoices Customer Financing Real Estate Equity / Lines of Credit Vendor Finance Leasing
  23. 23. •How the Apple I was born •Steve Jobs Went to Byte Shop and got purchase order, went to Crammer electronics and got parts on trade credit after presenting purchase order. •It wasn’t easy, even for Jobs, with no history.
  24. 24. • • • Latrobe Valley Based Formed in 2001 by Darren Kelly & Lance Willis Focused on developing long-term supplier relationships with customers in the Pulp & Paper and Power Industries asking for cash in advance • Employing over 100 Employees at peak periods
  25. 25. Melbourne Based Manufacturer • • • Monique & Danielle Started on Personal Savings and in 2009 Won Multiple Design/Product awards and continues to expand in Clayton on a mix of bootstrapping principles • No marketing Budget - All PR
  26. 26. More Info? Google: #metabiz bootstrapping
  27. 27. Start a Conversation #metabiz
  28. 28. Crowdfunding “Collective effort of individuals who network & pool their money usually initiated via the internet, to support efforts by other people or organisations.” POLL: Who’s Used Crowdfunding before?
  29. 29. Crowdfunding Basics
  30. 30. Is it Legitimate? • Make up your own mind • Massolution put out data showing the overall crowdfunding industry has raised $2.7 billion in 2012, across more than 1 million individual campaigns globally. In 2013 the industry is projected to grow to $5.1 billion. (Confirmed that it did)
  31. 31. 2 Types of Crowdfunding • Donation based funding • Donate via collaborative goal process in return for products, perks or rewards. • Investment Crowdfunding • Individuals become owners & shareholders for financial return potential
  32. 32. Recent Scrutiny • Funding of a company by selling small amounts of equity to many investors. • Scrutiny in the US • Mentioned in JOBS Act. • Awaiting tighter Legislation
  33. 33. What can be Crowdfunded? • Disaster Relief • Artistic Creation • Political Campaigns • Not-For Profit Initiatives • Startup Company Funding • New Product Developments
  34. 34. Top 10 Crowdfund Platforms • Kickstarter • Somolend • Indiegogo • appbackr • Crowdfunder • AngelList • RocketHub • Invested.in • Crowdrise • Quirky POLL: Which have you heard of?
  35. 35. What’s your Network Worth? • How much could you potentially raise? • A. How many people are in your network • Social Media Connections and Beyond • B. Average amount per Contributor • Average US contribution is $75 Network Value = A x B
  36. 36. Funding Catalysts 3rd Degree 3rd Degree 2nd Degree 2nd Degree 1ststDegree 1 Degree Core Core
  37. 37. Plan your Funding Basic $1K – 10K Contributors Campaign (days) Time required (per day) Campaign activity Relationship with network Intermediate $10K - $100K Advanced $100K+ 40 to 20 150 or more 1000+ 30-45 30-60 30-75 15 mins to 2 hrs 1 to 2 hrs 2 to 4 Methodical, yet flexible & dynamic plan involving consistent emails and social media conversations. Same as basic, plus. Same as Intermediate plus. Blog influence Press support and broader reach Established trust between the Project Leaders and their Tier 1 and part of their Tier 2 Network Established trust between the Project Leaders and their Tier 1 and Tier 2 Networks, and part of their tier 3. Established trust between the Project Leaders and their Tier 1 and Tier 2 Networks, and part of their tier 3. Many times the project leaders are stars in their niche/community and have an engaged and energised fan base
  38. 38. Review and Launch
  39. 39. How Metamorph can Help • Strategic Planning, develop your Crowdsource strategy, choose the right platform, develop the best campaign and ensure the greatest Crowdfunding success. • Strategic Marketing to get you the best platform to communicate your crowdfunding initiative. Get your campaign to go Viral!
  40. 40. More Info? Google: #metabiz crowdfund
  41. 41. Start a Conversation #metabiz
  42. 42. Government Grants www.grantslink.gov.au http://www.business.vic.gov.au http://www.business.gov.au
  43. 43. More Info? Google: #metabiz grants
  44. 44. Start a Conversation #metabiz
  45. 45. Metamorph Services • Business Intelligence & Data Analysis • Strategic Planning & Innovation • Asset Optimisation & Reliability • R&D & Advanced Engineering
  46. 46. Metamorph Consulting Group

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