This document discusses entrepreneurial financing and provides advice for startups. It begins by introducing different models of entrepreneurial financing including bootstrapping, angel investing, venture capital, and grants. It then focuses on the importance of profit and loss forecasts and cash flow management. The document advises entrepreneurs to invest their time initially and validate their business model with customers before raising funds. It provides tips for writing a strong business plan and identifies sources of funding in Malaysia such as angel investors, grants from organizations, venture capital firms, and loans. The document aims to answer questions about financing a startup from the initial stages through growth.

1. Entrepreneurial Financing
16 June 2013
UiTM
Eliza Noordin
eliza@nashata.com

2. "If the bee disappeared from the surface
of the globe, mankind would have only
four years left to live; no more bees, no
more pollination, no more grass, no
more animals, no more men ..."
Einstein

3. What I will try to answer
1. Entrepreneurial Financing Model
2. How to manage financial especially for:
• To start up business
• To get access to fund and raise capital
• To make financing decision
3. Do we need to make investment?
4. How to write a good business plan?
5. Where to reach for Grants, Loans, Incentives

4. Entrepreneurship Financing Model
1. Boot-Strap & Self-funded
2. Fama
3. Angel Investment
4. Venture Capital
5. Grants
6. Loans

5. IT Entrepreneurship & Innovation
Who are your IT Entrepreneur Idols?
How are they funded?

6. How is it different from local scene?

7. How to manage financial
A lot of IT Entrepreneurs have NO financial
knowledge.
Is your P&L and Forecast important?
Is your Cash Flow Important?
Is it difficult to do?
What should you do?

8. P&L and Forecast
• Why is it important?
• To ground all your gut – feel
• Gives you a better understanding of your
– pricing and revenue
– Cost of sales
– Operational cost
– Gross Profit
– Net Profit
• Improve your assumptions
• Don’t overdo it – Keep it agile but good to have targets

9. Cashflow
• Your financial status
• Determines the amount of funds required for
business
• How much you need to sustain your business

10. Do we need to make investment?
What type of investment initial stage?
• Time
• Commitment
• Funds to survive
• Product Development – you are at uni. You only
need money to fund yourself and team members
• A lot of things out there are free
• BUT don’t forget to talk to customers

11. Exciting Stage
• Find customers
• Get paying customers
• Get your business model to work
• Think revenue
Raise more funds for sales and marketing
Why?
• Easier to raise funds
• Better bargaining power

12. Awesome Stage
• Get more revenue
• Set higher targets
• Keep customers happy
• Build a diverse awesome team
• But oh.. Don’t forget to keep good books 
• Make sure you are profitable and build good cash reserves
Raise more funds if you want to scale fast OR roll the
company’s money
Why?
• Capture bigger market share
• Have a better competitive advantage

13. Super Awesome Stage
• Build or acquire more products
• Keep customers super happy
• Empowering an awesome team
• Your books look super nice
Raise more funds if you want to grow bigger OR
exit to bigger group OR Merge OR IPO OR keep
growing organically.

14. How to write a good business plan?
• Simple, straight forward clear writing style
• Data, facts and figures help
• Big Target Market
• Growth Potential
• Clear differentiation and competitive advantage
• Achievable Assumptions
• Comprehensive Team
• Simple to execute revenue model
• Past financial performance and 3 year forecast
• List of potential customers
• Clear about what the funds requested are for
• Scalability

15. STAGES oF a COMPANY
Seed
Start-
up
Early
Stage
Expansi
on
Growth
pre-
IPO
Public

16. How much should I raise
• Raise what you really need.
• Don’t over or under raise
Malaysia context
• Seed Stage – up to RM100k
• Start up Stage – up to RM1M
• Early Stage – RM1M – RM5M
• Expansion and Growth Stage – RM5 and above

17. Where can I get funds?
• Angel Investors
– https://angel.co/
– Malaysian Business Angel Network (MBAN)
– LinkedIn
– Other entrepreneurs
• Grants
– 1337 Ventures
– Cradle Investment Programme
– IPCC (MDeC)
– MCMC
• VCs
– Mavcap
– 500 Durians
– Overseas partners
• Loans / Incentives
– SMEBank

18. Q&A
Eliza Noordin
eliza@nashata.com
Skype : eliza1290
Slideshare.net/eritza