This document discusses financing options for startups, including debt, equity, and sponsorship. It outlines the differences between debt and equity financing. Debt financing includes loans from friends and family, banks, suppliers, and customers. Equity financing includes common stock owned by founders and preferred stock owned by investors. The appropriate financing depends on the startup's stage. Later sections provide an overview of venture capital perspectives and tips for raising capital and managing reporting.

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Financing Mix
Dr. ir. Wouter Haerick
Ghent University
Department of Information Technology (INTEC)
INTEC Broadband Communication Networks research group (IBCN)

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Money should not be the issue
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Money, off course, is never just money.
Money, of course, is never just money. It's always something else,
and it's always something more, and it always has the last word.
1948 – Paul Auster – Writer/Poet
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Outline for this session
• Financing sources: debt versus equity
• Venture Capital: The VC perspective
Parterning with Venture Capitalists
Alex Brabers – Executive VP at GIMV
• Dos and don’ts in raising capital and
how to manage reporting
Jurgen Ingels – CFO & Founder at Clear2Pay
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Three ways to finance your startup:
• Debt (vreemd vermogen)
Your company promises to make fixed pay-back payments in the future
When failing to do so, you lose control of your company …
• Equity (eigen vermogen)
Return depends on the cash flow left, after all debt payments
• Sponsorship
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Debt financing Equity financing
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Debt financing
Debt financing
• Friends, fools, family (FFF)
• WinWinLoan (www.pmv.eu)
• Bank
• Guaranteed Loan (www.pmv.eu)
• Bonds (obligaties)
• Your suppliers (late outgoing payments)
• Your customers!! (advance incoming payments)
• Accounts receivable
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Equityfinancing
Equity
• Common stock
• Stock owned by the founders
• Preferred stock
• Stock owned by the investors
• Preferences:
• A higher return
• Paid first
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Debt versus Equity
Debt financing Equity financing
High priority on cash flow Lowest priority on cash flow
Tax Deductible Less Tax Deductible
Fixed duration Undetermined duration
No management control Management control
Management expertise
Hybrid financing
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Financing depends on the stage of your company …
Guaranteed Loan
Pre-seed
(convertable loans)
Source: Kmeuhel
(en.wikipedia.org/wiki/Seed_funding) 12

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Practical sources towards financing:
Agentschap ondernemen
Brochure Risicokapitaal
Per VC fund an overview is given of :
- minimal and maximum investments,
- focus, region and preferred participation
IWT Vlaanderen – www.iwt.be
BAN Vlaanderen – www.ban.be
Website of VC - e.g. GIMV.be
Startup news
Crowd funding - e.g. www.Kickstarter.com
- e.g. Mymicroinvest.com http://www.chubbybrain.com/
http://techcrunch.com/
Google/Yahoo
Look at the investors of sucessful startups
Look at investors active in your target market
Use your network
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14. Dare to start – Financing Mix
Outline for this session
• Financing sources: debt versus equity
• Venture Capital: The VC perspective
Parterning with Venture Capitalists
Alex Brabers – Executive VP at GIMV
• Dos and don’ts in raising capital and
how to manage reporting
Jurgen Ingels – CFO & Founder at Clear2Pay
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