There is more to managing the financial health of your emerging start-up than raising money and selling out. The day-to-day financials matter, as they impact every other area of your business. Diagnosing your “full” costs, including those to acquire and serve customers, understanding different elements of cost. How your business model impacts your financial model and impacts value creation. It helps to institute the right procedures that will help keep things in check, and give you the visibility into key metrics so you can effectively monitor your progress.How do you read the numbers, the small data, not just the big data? How does value get created and what is valuation? Lack of knowledge may lead you to venture failure. The presentation at the IIMB/NSRCEL session for entrepreneurs and wanna be entrepreneurs is attached here touching on some of these aspects and more... Happy Reading
Entrepreneurial finance involves understanding resource allocation, cost of capital, funding sources, and cash management for entrepreneurial firms. It includes evaluating business opportunities from start-up to later stages by exploring options to create value for the business and stakeholders. Sources of funding for funding gaps can include equity investment, angel investment, venture capital, debt financing, strategic investment, and innovatively sourcing cash. Funds raised are invested in available opportunities, latent opportunities, and opportunities based on an evolving entrepreneurial strategy, with the goal of creating value.
The document provides information for startups on fundraising from venture capital investors in Poland. It discusses the stages of startup development and when it is best to seek investment. Sources of capital at different stages are outlined, including typical investment amounts and share percentages. An overview is given of how venture capital funds operate, how they evaluate projects, and the investment process. Advice is provided on preparing investment materials like a teaser, presentation, and financial plan. Golden rules are outlined for finding investors and having successful investment meetings and negotiations.
The document provides information on valuation methods for startups. It discusses questions founders may have about valuation, outlines various valuation methods including cost, income and market-based approaches, and provides examples of how valuations are determined for startups at different stages. Valuation is presented as a multifaceted process that considers both tangible and intangible factors, and is driven by the team, funding needs, deal terms, and negotiation between founders and investors.
VENTURECAPITAL FINANCING
- By Dr. Ratna Sinha, Associate Professor, ISBR Business School, Bangalore
Venture capital funding is one of the important options for entrepreneurs to secure funding. Venture capital (VC) means risk capital. The risk envisaged may be very high or may be so high as to result in total loss or very less so as to result in high gains. This 35 slides power point presentation on Venture Capital Financing explains how the Venture Capital Funds are organized. The other objectives of the presentation intended to provide students with the terminology of VC and knowledge of the key industry facts. This presentation help to understand types of venture capital funds, mode of operations and industry- standard technique for the valuation of VC investments.
Hello! Find more information about short presentation topics for MBA in 2018-2019. More https://www.mbadissertation.org/presentation-topics-for-mba-students/
Workshop fundraising at antler (herman kienhuis)Herman Kienhuis
Herman Kienhuis gave a presentation on startup fundraising. He discussed why startups need to raise capital such as for operating costs, R&D investments, and international expansion. He explained how startup funding works in stages from friends and family rounds to venture capital rounds. Kienhuis also covered what investors look for like the founding team, product/proposition, traction, growth potential, and financial plan. He provided tips on where to find investors through networks, events, and online directories as well as best practices for fundraising.
Venture capital power point presentationKarthik S Raj
Venture capital involves investing in startup companies and small businesses with growth potential. It provides funding to new companies and helps them grow. Venture capital is high-risk but can provide high returns. It is typically invested in technology, biotech, or other innovative companies. Venture capital funds pool money from investors and then invest in ventures on their behalf. They provide capital as well as management assistance to the companies they invest in.
Process of evaluating an existing businessEja Halim
This document outlines the key steps in evaluating an existing business for purchase:
1) Determine the owner's reasons for selling and the physical condition of the business assets and records.
2) Analyze the potential for the business' products/services by researching customer characteristics, composition and competitors.
3) Consider important legal aspects like liens, bulk transfers, contract assignments, covenants not to compete and ongoing legal liabilities that could be inherited.
4) Evaluate the financial soundness of the business by assessing strengths/weaknesses, responsibilities, costs, employee impacts and conducting proper due diligence.
Entrepreneurial finance involves understanding resource allocation, cost of capital, funding sources, and cash management for entrepreneurial firms. It includes evaluating business opportunities from start-up to later stages by exploring options to create value for the business and stakeholders. Sources of funding for funding gaps can include equity investment, angel investment, venture capital, debt financing, strategic investment, and innovatively sourcing cash. Funds raised are invested in available opportunities, latent opportunities, and opportunities based on an evolving entrepreneurial strategy, with the goal of creating value.
The document provides information for startups on fundraising from venture capital investors in Poland. It discusses the stages of startup development and when it is best to seek investment. Sources of capital at different stages are outlined, including typical investment amounts and share percentages. An overview is given of how venture capital funds operate, how they evaluate projects, and the investment process. Advice is provided on preparing investment materials like a teaser, presentation, and financial plan. Golden rules are outlined for finding investors and having successful investment meetings and negotiations.
The document provides information on valuation methods for startups. It discusses questions founders may have about valuation, outlines various valuation methods including cost, income and market-based approaches, and provides examples of how valuations are determined for startups at different stages. Valuation is presented as a multifaceted process that considers both tangible and intangible factors, and is driven by the team, funding needs, deal terms, and negotiation between founders and investors.
VENTURECAPITAL FINANCING
- By Dr. Ratna Sinha, Associate Professor, ISBR Business School, Bangalore
Venture capital funding is one of the important options for entrepreneurs to secure funding. Venture capital (VC) means risk capital. The risk envisaged may be very high or may be so high as to result in total loss or very less so as to result in high gains. This 35 slides power point presentation on Venture Capital Financing explains how the Venture Capital Funds are organized. The other objectives of the presentation intended to provide students with the terminology of VC and knowledge of the key industry facts. This presentation help to understand types of venture capital funds, mode of operations and industry- standard technique for the valuation of VC investments.
Hello! Find more information about short presentation topics for MBA in 2018-2019. More https://www.mbadissertation.org/presentation-topics-for-mba-students/
Workshop fundraising at antler (herman kienhuis)Herman Kienhuis
Herman Kienhuis gave a presentation on startup fundraising. He discussed why startups need to raise capital such as for operating costs, R&D investments, and international expansion. He explained how startup funding works in stages from friends and family rounds to venture capital rounds. Kienhuis also covered what investors look for like the founding team, product/proposition, traction, growth potential, and financial plan. He provided tips on where to find investors through networks, events, and online directories as well as best practices for fundraising.
Venture capital power point presentationKarthik S Raj
Venture capital involves investing in startup companies and small businesses with growth potential. It provides funding to new companies and helps them grow. Venture capital is high-risk but can provide high returns. It is typically invested in technology, biotech, or other innovative companies. Venture capital funds pool money from investors and then invest in ventures on their behalf. They provide capital as well as management assistance to the companies they invest in.
Process of evaluating an existing businessEja Halim
This document outlines the key steps in evaluating an existing business for purchase:
1) Determine the owner's reasons for selling and the physical condition of the business assets and records.
2) Analyze the potential for the business' products/services by researching customer characteristics, composition and competitors.
3) Consider important legal aspects like liens, bulk transfers, contract assignments, covenants not to compete and ongoing legal liabilities that could be inherited.
4) Evaluate the financial soundness of the business by assessing strengths/weaknesses, responsibilities, costs, employee impacts and conducting proper due diligence.
The document discusses various sources of financing for new businesses. It begins by explaining bootstrapping, which involves operating frugally without external financing. It notes the advantages of bootstrapping include full control and no need to answer to investors, but the disadvantages include slower growth without investment. The document then discusses different types of investors that provide financing over the stages of a business, from friends and family and angel investors in the early stages, to venture capital, asset-based lenders, and public financing like IPOs in later stages.
1. Venture capital firms raise capital to finance new companies, take equity stakes and board positions, add value through participation, and seek higher returns through liquidity events like IPOs or acquisitions.
2. In 2006, $25.8 billion was invested in the US through 2,454 deals, averaging $10.5 million per deal. Information technology received the majority of investments.
3. Venture capital has significantly grown as an asset class since 1980 and has expanded internationally to places like India and China.
Whether you've been in business one week or five years, an infusion of funds is always welcome. But what type of financing is best for your business? There are so many factors to consider--from the stage of your business to how much it'll cost to get the money--that just choosing a path to follow can be overwhelming.
It takes more than just a great idea to run a successful business. Entrepreneurs and existing business owners need capital to pursue their vision.
Raising funds is the most tedious and complex question faced by every startups. There are few options by which startups can raise funds are been listed in this presentation
I had the opportunity to address the Impact Session on “How to Grow & Manage Startups” organized by ICSI-NIRC on 17.2.2016. In my opening remarks I stated that we are incredibly excited about the Startup India Action Plan announced by the Hon’ble Prime Minister of India, which is definitely going to motivate many young entrepreneurs to turn ideas into action and create more jobs opportunities in India. With faster registration of patents and protection for Intellectual Property rights, every entrepreneur would also be confident of reward for his innovation. Day is not far off when India may acquire from 3rd position to 1st position with largest number of start-ups globally.
Addressing the gathering I stated that a lot of businesses have entered the market these days to reach out to customer with different channels. The trust factor through offline shopping has been replaced with online shopping as it provides cheaper, economical and variety of things to buy. While starting up your own business, it is important to understand that how to manage the growth in the present and future context. Company Secretaries play a proactive role in guiding these startups by providing professional support ranging from business setup, documentation, compliances, accounting, payrolls, funding and many more that will help them to rise up to the challenges in the global economy.
The ICSI must rise to the occasion to encourage and foster its young, capable and talented members for their future splendor by Setting-up of incubation centers and provide them necessary support and hand-holding in their growth. It is good time to start chain programmes on Startups and greet the future that “WE ARE READY”.
The document provides an overview of startup financing options and the investment process. It discusses self-financing, debt financing, equity financing sources like angels and venture capital. It covers how VCs and angels make money, what investors look for, engaging with investors through the deal process, typical deal terms, and important factors to consider when choosing investors beyond just valuation.
This revision presentation highlights the key sources of finance potentially available to a new business and outlines the key issues when choosing the source and mix of finance.
Venture capitalists make decisions based on balancing fear and greed. Venture capital is defined as long-term equity investment in new technology projects that have potential for significant growth and return. Venture capital financing provides private equity to early-stage companies with potential for high growth in exchange for an eventual realization event like an IPO or acquisition. The venture capital investment process involves deal origination, screening, due diligence, deal structuring, post-investment activity, and an exit plan.
The document discusses 16 different types and sources of financing available for start-up businesses, including personal savings, friends and family, venture capital, angel investors, government grants and programs, equity offerings, IPOs, warrants, banks and commercial lenders, commercial finance companies, bonds, leases, commercial paper, bank overdrafts, asset-based financing, and private placements. Each type is briefly described in 1-2 sentences.
Venture capital refers to equity investments made for the launch, early development, or expansion of businesses. Venture capital comes from institutional investors like pension funds and is organized through limited partnerships with venture capital firms. Venture capitalists source potential deals, conduct due diligence, manage investments through board seats, and aim to harvest investments through exits like mergers and acquisitions or IPOs within 3-5 years. Their goal is to maximize returns for investors, though most portfolio companies do not become successful exits.
Venture capital refers to long-term risk capital provided to finance high-risk, high-growth startups. Venture capitalists are professional investors who pool resources to assist entrepreneurs in the early years of their projects. Venture capital comes in the forms of debt, equity, or preferred stock. The venture capital process involves deal origination, screening, evaluation, deal structuring, and post-investment activities like exits through IPO, mergers and acquisitions, share buybacks, or sales to strategic investors. Reliance Venture Asset Management is an example of an Indian corporate venture capital firm that follows a multi-stage investment process.
This document provides an overview of key concepts related to investment including what investment is, the needs it fulfills, inflation and how it impacts returns, different asset classes and their typical returns, golden rules of investing, steps to take when investing, interest rates and factors that influence them, short-term and long-term financial investment options like savings accounts, fixed deposits, mutual funds, shares, bonds, derivatives and more. The document aims to educate readers on fundamental investment principles.
This presentation provides an overview of the elements that comprise the entrepreneurial ecosystem and shares the best practices for new product development. It also provides measures that can be used to evaluate the effectiveness of the entrepreneurial ecosystem and proposes a world class solution that can be used to increase the success rate of entrepreneurial ventures.
This document provides an overview of various investment avenues in India including securities, fixed income securities, government securities, money market instruments, deposits, postal schemes, insurance, real estate, and precious metals. It describes the key characteristics of stocks, bonds, mutual funds, bank deposits, post office savings schemes, life insurance policies, real estate, and other assets. The document aims to educate investors on their options for investment, savings, and risk management.
This document discusses venture capital and angel financing. It defines venture capital as money provided by investors to start-ups and small businesses with long-term growth potential. Venture capital financing is high-risk but can have high rewards. Angel financing refers to early investments from individuals, usually friends or family of the entrepreneur. The document outlines the stages of venture capital funding, advantages and disadvantages, as well as how venture capital firms and angel investors operate.
Support has never been stronger for startups and the opportunities for finding finance are vast. Although each method has its benefits, many drawbacks also exist. As a result, it is essential to research the funding possibilities in order to find the perfect match (or matches) for your startup.
The document discusses the EBIT-EPS approach for determining appropriate capital structure. The EBIT-EPS approach involves selecting a capital structure that maximizes earnings per share (EPS) over the expected range of earnings before interest and taxes (EBIT). Managers use this approach to balance debt and equity financing by analyzing how different capital structures affect EPS at given EBIT levels. However, the approach does not consider risk premiums associated with higher debt levels and may not always be the best tool for capital structure decisions.
So you want to start a business and need funding. Here are more than a dozen ways to finance your new business, from using your own assets all the way to an initial public offering, just like Facebook.
The terms "Incubator" and "accelerator" form a basic part of the vocabulary of the entrepreneur. For better understanding, here we define the differences!
This document provides an overview of a presentation on venture capital. It includes definitions of venture capital, the nature and scope of venture capital, regulatory framework, problems with venture capital, the venture capital investment process, the current scenario in India, global experience, and conclusions. The document outlines topics that will be covered in the presentation and provides background information on venture capital concepts.
The science and art of Startup ValuationsAnjana Vivek
Insights on Valuation and Negotiations… OR … how Can You can get a better price. ..whether for M&A or VC or strategic investment. Valuation is Subjective and Objective; there is a math to valuation, there are Business models which are captured in financial models and spread sheets. There is scenario analysis and sensitivity analysis. There are premiums and discounts assigned to multiple factors. This objective math is impacted by subjectivity of the person(s) doing the calculation, for example, if you are an unlisted company, is the discount factor 50% or 80% or somewhere in-between? This presentation sets out the methods and process of valuation with a few specific examples on valuations for different cases, including mentoring, acceleration, investment and more.
Norbert Sluzewski is an accomplished business leader with over 20 years of experience in IT, management, leadership, innovation and business transformation.
The document discusses various sources of financing for new businesses. It begins by explaining bootstrapping, which involves operating frugally without external financing. It notes the advantages of bootstrapping include full control and no need to answer to investors, but the disadvantages include slower growth without investment. The document then discusses different types of investors that provide financing over the stages of a business, from friends and family and angel investors in the early stages, to venture capital, asset-based lenders, and public financing like IPOs in later stages.
1. Venture capital firms raise capital to finance new companies, take equity stakes and board positions, add value through participation, and seek higher returns through liquidity events like IPOs or acquisitions.
2. In 2006, $25.8 billion was invested in the US through 2,454 deals, averaging $10.5 million per deal. Information technology received the majority of investments.
3. Venture capital has significantly grown as an asset class since 1980 and has expanded internationally to places like India and China.
Whether you've been in business one week or five years, an infusion of funds is always welcome. But what type of financing is best for your business? There are so many factors to consider--from the stage of your business to how much it'll cost to get the money--that just choosing a path to follow can be overwhelming.
It takes more than just a great idea to run a successful business. Entrepreneurs and existing business owners need capital to pursue their vision.
Raising funds is the most tedious and complex question faced by every startups. There are few options by which startups can raise funds are been listed in this presentation
I had the opportunity to address the Impact Session on “How to Grow & Manage Startups” organized by ICSI-NIRC on 17.2.2016. In my opening remarks I stated that we are incredibly excited about the Startup India Action Plan announced by the Hon’ble Prime Minister of India, which is definitely going to motivate many young entrepreneurs to turn ideas into action and create more jobs opportunities in India. With faster registration of patents and protection for Intellectual Property rights, every entrepreneur would also be confident of reward for his innovation. Day is not far off when India may acquire from 3rd position to 1st position with largest number of start-ups globally.
Addressing the gathering I stated that a lot of businesses have entered the market these days to reach out to customer with different channels. The trust factor through offline shopping has been replaced with online shopping as it provides cheaper, economical and variety of things to buy. While starting up your own business, it is important to understand that how to manage the growth in the present and future context. Company Secretaries play a proactive role in guiding these startups by providing professional support ranging from business setup, documentation, compliances, accounting, payrolls, funding and many more that will help them to rise up to the challenges in the global economy.
The ICSI must rise to the occasion to encourage and foster its young, capable and talented members for their future splendor by Setting-up of incubation centers and provide them necessary support and hand-holding in their growth. It is good time to start chain programmes on Startups and greet the future that “WE ARE READY”.
The document provides an overview of startup financing options and the investment process. It discusses self-financing, debt financing, equity financing sources like angels and venture capital. It covers how VCs and angels make money, what investors look for, engaging with investors through the deal process, typical deal terms, and important factors to consider when choosing investors beyond just valuation.
This revision presentation highlights the key sources of finance potentially available to a new business and outlines the key issues when choosing the source and mix of finance.
Venture capitalists make decisions based on balancing fear and greed. Venture capital is defined as long-term equity investment in new technology projects that have potential for significant growth and return. Venture capital financing provides private equity to early-stage companies with potential for high growth in exchange for an eventual realization event like an IPO or acquisition. The venture capital investment process involves deal origination, screening, due diligence, deal structuring, post-investment activity, and an exit plan.
The document discusses 16 different types and sources of financing available for start-up businesses, including personal savings, friends and family, venture capital, angel investors, government grants and programs, equity offerings, IPOs, warrants, banks and commercial lenders, commercial finance companies, bonds, leases, commercial paper, bank overdrafts, asset-based financing, and private placements. Each type is briefly described in 1-2 sentences.
Venture capital refers to equity investments made for the launch, early development, or expansion of businesses. Venture capital comes from institutional investors like pension funds and is organized through limited partnerships with venture capital firms. Venture capitalists source potential deals, conduct due diligence, manage investments through board seats, and aim to harvest investments through exits like mergers and acquisitions or IPOs within 3-5 years. Their goal is to maximize returns for investors, though most portfolio companies do not become successful exits.
Venture capital refers to long-term risk capital provided to finance high-risk, high-growth startups. Venture capitalists are professional investors who pool resources to assist entrepreneurs in the early years of their projects. Venture capital comes in the forms of debt, equity, or preferred stock. The venture capital process involves deal origination, screening, evaluation, deal structuring, and post-investment activities like exits through IPO, mergers and acquisitions, share buybacks, or sales to strategic investors. Reliance Venture Asset Management is an example of an Indian corporate venture capital firm that follows a multi-stage investment process.
This document provides an overview of key concepts related to investment including what investment is, the needs it fulfills, inflation and how it impacts returns, different asset classes and their typical returns, golden rules of investing, steps to take when investing, interest rates and factors that influence them, short-term and long-term financial investment options like savings accounts, fixed deposits, mutual funds, shares, bonds, derivatives and more. The document aims to educate readers on fundamental investment principles.
This presentation provides an overview of the elements that comprise the entrepreneurial ecosystem and shares the best practices for new product development. It also provides measures that can be used to evaluate the effectiveness of the entrepreneurial ecosystem and proposes a world class solution that can be used to increase the success rate of entrepreneurial ventures.
This document provides an overview of various investment avenues in India including securities, fixed income securities, government securities, money market instruments, deposits, postal schemes, insurance, real estate, and precious metals. It describes the key characteristics of stocks, bonds, mutual funds, bank deposits, post office savings schemes, life insurance policies, real estate, and other assets. The document aims to educate investors on their options for investment, savings, and risk management.
This document discusses venture capital and angel financing. It defines venture capital as money provided by investors to start-ups and small businesses with long-term growth potential. Venture capital financing is high-risk but can have high rewards. Angel financing refers to early investments from individuals, usually friends or family of the entrepreneur. The document outlines the stages of venture capital funding, advantages and disadvantages, as well as how venture capital firms and angel investors operate.
Support has never been stronger for startups and the opportunities for finding finance are vast. Although each method has its benefits, many drawbacks also exist. As a result, it is essential to research the funding possibilities in order to find the perfect match (or matches) for your startup.
The document discusses the EBIT-EPS approach for determining appropriate capital structure. The EBIT-EPS approach involves selecting a capital structure that maximizes earnings per share (EPS) over the expected range of earnings before interest and taxes (EBIT). Managers use this approach to balance debt and equity financing by analyzing how different capital structures affect EPS at given EBIT levels. However, the approach does not consider risk premiums associated with higher debt levels and may not always be the best tool for capital structure decisions.
So you want to start a business and need funding. Here are more than a dozen ways to finance your new business, from using your own assets all the way to an initial public offering, just like Facebook.
The terms "Incubator" and "accelerator" form a basic part of the vocabulary of the entrepreneur. For better understanding, here we define the differences!
This document provides an overview of a presentation on venture capital. It includes definitions of venture capital, the nature and scope of venture capital, regulatory framework, problems with venture capital, the venture capital investment process, the current scenario in India, global experience, and conclusions. The document outlines topics that will be covered in the presentation and provides background information on venture capital concepts.
The science and art of Startup ValuationsAnjana Vivek
Insights on Valuation and Negotiations… OR … how Can You can get a better price. ..whether for M&A or VC or strategic investment. Valuation is Subjective and Objective; there is a math to valuation, there are Business models which are captured in financial models and spread sheets. There is scenario analysis and sensitivity analysis. There are premiums and discounts assigned to multiple factors. This objective math is impacted by subjectivity of the person(s) doing the calculation, for example, if you are an unlisted company, is the discount factor 50% or 80% or somewhere in-between? This presentation sets out the methods and process of valuation with a few specific examples on valuations for different cases, including mentoring, acceleration, investment and more.
Norbert Sluzewski is an accomplished business leader with over 20 years of experience in IT, management, leadership, innovation and business transformation.
Experimentar y aprender: las claves del nuevo emprendimientoAramis Rodriguez
La gerencia tradicional no funciona cuando se intenta gestionar una empresa naciente en un entorno incierto. En los próximos años, los emprendedores y gerentes exitosos serán aquellos que empleen métodos de experimentación continua, no los que primero planifican y luego ejecutan.
The Global Start-ups Exchange Program helps start-ups expand into new global markets like Southeast Asia. Over 4 weeks, start-ups receive local induction, resources, mentors and office space to validate their product, understand local needs, and gain traction. They leverage an existing partner network and can access opportunities in the large ASEAN market. The program culminates in a pitch event to potential investors and partners. Eligible start-ups are pre-Series A to Series B companies in ICT interested in Southeast Asia expansion.
Valuation for Startups - What is your Start-up worth?TiE Bangalore
TiE Masterclass: Valuation for Startups
This 3 part workshop conducted by Anjana Vivek, Founder Director of Venture Bean Consulting, Parag Dhol, MD, Inventus Capital Partners & Pavan Sondur, CEO & Cofounder, UNBXD
The document outlines guidelines for employee stock option plans (ESOPs) and employee stock purchase plans (ESPPs) for publicly listed companies in India. Key points include:
1) ESOPs and ESPPs must be approved by shareholders through a special resolution detailing key terms.
2) Options must vest within 8 years, be exercised within 5 years of vesting, and shares issued upon exercise are not locked-in.
3) A compensation committee will administer the plans and determine grants, ensuring compliance with insider trading laws.
4) Companies must disclose details of plans and options in annual reports, and account for the value of options as employee compensation.
This document provides an overview of venture capital and the venture capital process. It begins with definitions of venture capital and venture capitalists. It then covers the typical stages of a venture capital fund and business model. It also describes common venture capital investment instruments and exit mechanisms. The rest of the document details various aspects of the venture capital process, including screening ventures, valuation methods, financing over a venture's lifecycle, and term sheet components.
An online certificate from March 30, 2016 confirms that Dan Kjeldstrøm Hansen successfully completed the non-credit course "Exploratory Data Analysis" offered through Coursera and authorized by Johns Hopkins University. The certificate was signed by Jeff Leek, Roger Peng, and Brian Caffo of the Department of Biostatistics at the Johns Hopkins Bloomberg School of Public Health and can be verified on Coursera's website.
ESOP Guardian is a web-based application developed by Corporate Professionals eSolutions to manage all aspects of Employee Stock Option Plans (ESOPs) for companies. It provides separate interfaces for companies, employees, accounts teams, and ESOP trusts. The application automates complex ESOP calculations, provides real-time access and reports to help companies and employees manage multiple ESOP schemes for any number of employees in a centralized, paperless manner compliant with all regulations. Key features include automatic alerts, flexible customization, and data security options. Corporate Professionals eSolutions offers implementation and support services to help companies fully outsource or self-manage their ESOP programs using the ESOP Guardian application.
The document outlines provisions for issuing sweat equity shares and employee stock option plans (ESOPs) for unlisted companies under the new Indian Companies Act. It defines eligible employees, allows up to 15% of equity shares per year to be issued as sweat equity at a price determined by a registered valuer. Companies have flexibility to set exercise prices and vesting periods for ESOPs. It provides disclosure requirements for directors' reports and registers that must be maintained for sweat equity shares and ESOPs.
The Startup Equity Valuation Timeline
Angel Investment & Valuation
Angel Funding: The Valuation “Triangle”
Three Valuation Methods
VC Valuation Approach: Industry Standard Discount Rates
Comparables Valuation Approach: Median/Mean Round Size
Comparables Valuation Approach: Pre-Money Valuation
Range
Angel Valuation Considerations
The Dave McClure Five “Million Dollar Point” Approach*
Startany.com. Remote Acceleration Program.
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The Founder’s Guide to Early-Stage Valuation
Presented by Stephen R. Poland, co-founder 1x1 Media.
For many early-stage entrepreneurs assigning a valuation to your startup is one of the more intimidating tasks encountered during the fundraising quest. Based on the popular Founders’ Pocket Guide: Startup Valuation, this webinar provides a quick reference to all of the key topics around early-stage startup valuation and provides step-by- step examples for several valuation methods.
This webinar helps startup founders learn:
What a startup valuation is and when you need to start worrying about it.
Key terms and definitions associated with valuation, such as pre-money, post-money, and dilution.
How investors view the valuation task and what their expectations are for early-stage companies.
How the valuation fits with your target raise amount and resulting founder equity ownership.
How to do the simple math for calculating valuation percentages.
How to estimate your company valuation using several accepted methods.
Stephen R. Poland
Stephen R. Poland has worked with hundreds of startups and entrepreneurs, mentoring them on startup mechanics, funding plans, pitch decks, financial models, and due diligence documentation for the angel funding process.
Steve brings more than 20 years' experience in startups and entrepreneurship to his career. Leveraging leadership roles with the Walt Disney Company, MacMillan Publishing, and Bertelsmann, Steve co-founded startups in the digital music and on-demand media manufacturing sectors, as well an early days anti-virus product.
Along with being co-founder of 1x1 Media, Steve works as a venture growth advisor in Western North Carolina.
The presentation is about valuation of a start-up and usual deal structure - term sheet.
In the presentation you can find an overview why traditional valuation methods don't work (DCF, P/E multiple,...) and what are the real life approaches. You can also find more about types of the investments and potential exits.
The second part of the presentation is dedicated to the term-sheet and most frequent terms in an equity investment, especially in Central and Eastern Europe. In the presentation are listed the most frequent provision you can stumble upon, but no term sheet includes all of them.
In the presentation you can learn about many different clauses that influence economics and control in a venture capital deal. Nevertheless you should read more on the web (Term Sheet Hacks...) and the books like Venture Deal to have a clear picture if you have a good deal on the table or not for your startup.
ESOPS for Startups by Ms. Neela Badami Kesava Reddy
This document summarizes the legal aspects of employee stock option plans (ESOPs) for start-ups in India. It discusses the impact of the new Companies Act of 2013 on ESOPs, including exclusions of promoters from eligible employees. It also covers Securities and Exchange Board of India and Reserve Bank of India regulations, tax implications, required documentation, and corporate compliance procedures such as shareholder resolutions and disclosures. The presentation provides an overview of key definitions, rules around pricing, vesting, transfers and more for establishing legally compliant ESOP schemes for private companies in India.
Entrepreneurs need to put a value on their start-ups in order to raise money, and investors need to put a value on their investments to ensure an adequate return on investment. No negotiating item between entrepreneur and investor creates a wider gulf than this one. The two parties may agree on every other point but will have diametrically opposing views on what the start-up is worth and how much equity the investor should receive in exchange for his capital.
Valuation is challenging for a start-up. Since young businesses take time to become profitable, the trick of valuing start-ups is to focus on the future. If you want your start-up to be a masterpiece, you’ll need to use the right side of your brain as much as your left to determine value.
Is business valuation art or science? Is it possible to place a credible valuation on a Start-up? What is Pre-money valuation? What is Post-money valuation? How much your company worth? Are you really worth anything until you’re profitable? How to value your start-up for a VC? What are the Start-up valuation methods?
The document provides an overview of employee stock option plans (ESOPs) in India, including:
1) It describes the key aspects of ESOPs such as granting employees the right to purchase company shares in the future at a preset price, and how this can create wealth for employees as share prices appreciate over time.
2) It outlines the legal and regulatory framework for ESOPs in India, including guidelines from SEBI, the Companies Act, taxation rules, and accounting standards.
3) It discusses important considerations for companies in designing an ESOP scheme such as objectives, eligibility, pricing, vesting periods, and approvals required.
Startup Valuation: from early to mature stagesTatiana Siyanko
Methods and approached to startup and company valuations.
Please be free to send me any additions/correction proposals.
Prepared for Startup&co lecture in Freud cafe, Kyiv, April 30, 2014
FInancial Modeling and Valuations for Startups: Telling your Story with NumbersForesight Valuation Group
Telling your story with numbers, building a solid financial model and determining pre-money valuations for fundraising, are some of the most challenging activities for entrepreneurs.
Creating a set of realistic financial projections is critical to effectively communicating valuation expectations to investors and potential partners, while at the same time serving as an important tool to help articulate how you will prioritize spending and maximize the return on investment for an investor.
Based on her experiences as a valuation expert, CFO, start-up advisor and Stanford Lecturer, Efrat Kasznik will provide practical, hands-on tools on how you can :
• Build a robust business and financial model, based upon realistic expectations and sound assumptions
• Analyze different revenue models and cost structures associated with the formation of an emerging venture
• Implement best practices for structuring short and long term financial projections for your business plan and investor fundraising
• Understand the factors and models that determine startup valuations throughout the funding cycle, from seed funding to an exit event
• Successfully communicate your financial vision and understanding to investors
Efrat Kasznik, founder of Foresight Valuation Group, presented a workshop on financial modeling and valuation for startups. She discussed building financial models using the CURVE method, which involves modeling user rollout, revenue buildup, and expense buildup over multiple years. Kasznik also covered why startups should value themselves and provided an example valuation for a Series A funding round. The presentation aimed to help entrepreneurs use financial modeling to manage investor expectations and fundraising.
Finance nuances for a scaling venture - SAYesAnjana Vivek
Session on finance for 25 young entrepreneurs @ the South Asian Young Entrepreneurs Summit (SAYes) organised by The US Consulate General Chennai and The Indus Entrepreneurs (TiE) Bangalore Chapter
Proprietorship, Private Ltd. LLP or Partnership..?? Anjana Vivek
Multiple options are there starting a venture, for example: Sole Proprietorship, Partnership, Limited Liability Partnership (LLP ), One Person Company (OPC), Private Limited etc. What is the right one for you? Here are some tips to help you decide on what may suit you.
VC, PE, Angel, HNI, Seed Investor, Incubator, Accelerator, Corporate Investor, Strategic Investors, 3 Fs .. how do you distinguish between them? What is the homework you need to do before you approach an investor? How will you stand out from the clutter and demonstrate you can create value? How will you crack the exam of getting investors into the company, assuming you have a great idea, product, service or solution?Should you think of Plan B? Should you revisit your Business Model?
Business Planning and Preparing a Business PlanTiE Bangalore
The document provides guidance on business planning and preparing a business plan (BPlan). It discusses assessing strengths and constraints, setting goals in the short, medium and long term, and planning for different funding scenarios. The business model canvas tool is introduced as a framework to map out the key elements of the business model. When seeking investment, appealing to investors requires demonstrating high growth potential through a large total addressable market and an execution-capable team. The document outlines sections that should typically be included in a BPlan such as management team, products/services, marketing strategy, financial projections, and implementation timeline. It emphasizes that an effective plan clearly communicates the business idea and convinces the reader of its viability.
Envisage. Stratigize. Execute: IDEA to BUSINESSAnjana Vivek
Coming up with a brilliant idea for your venture is just the beginning, taking it forward is where many people flounder. Session at Eximius, the Entrepreneur Summit at IIMB on how to go about implementing your idea.
Icai national seminar m&a-deal valuationAnjana Vivek
Some pointers on Deal Valuation which is beyond numbers, including some questions 'to trigger thinking' related to valuation from a buyer/seller perspective
The Science and Art of Startup Valuations - Anjana VivekTiE Bangalore
TiE Masterclass: Valuation for Startups
This 3 part workshop conducted by Anjana Vivek, Founder Director of Venture Bean Consulting, Parag Dhol, MD, Inventus Capital Partners & Pavan Sondur, CEO & Cofounder, UNBXD
Microsoft Ventures Masterclass - Business models growth and value creationAnjana Vivek
A framework and process to analyse your business and help you take it to the next level. Topics: Business Models – A Brief Introduction; Stock Take – At the Start; Growth: Sales and Beyond Sales; Valuation and Value Creation; Other Aspects beyond numbers
This document outlines a presentation on business models, growth, and value creation. It discusses defining business models, examples of innovative Indian companies, the business model canvas with its 9 building blocks, assessing the starting point of a business, setting goals and targets, analyzing sales and growth parameters, governance, valuation, and other considerations for growth. Key aspects covered include stocktaking, setting short, medium, and long-term goals, segmenting and analyzing sales, managing the sales pipeline, demonstrating value, and readiness for scaling.
You need a business plan to document your business and your go forward plan. This is especially important if you are looking for financing. This outlines what is required for a business plan.
The document discusses the importance of developing a thorough business plan when starting a new venture. It explains that a business plan should communicate the entrepreneur's vision to attract investors, employees and customers. The business plan components include an executive summary, market analysis, business team details, product/service overview and financial projections. It also provides tips for implementing the plan, measuring progress, updating it over time, and reasons why some plans fail like unreasonable goals or lack of market need.
This document outlines the key steps and considerations for starting your own business, including developing a business plan, determining financing options, choosing a legal structure, obtaining necessary licenses and permits, and establishing important partnerships. It discusses developing marketing strategies, financial projections, and exit strategies. The presentation emphasizes doing thorough research and due diligence to understand the market and ensure viability before launching a new business venture.
The document provides information on valuation methods for startups. It discusses questions founders may have about valuation, outlines common valuation methods including cost, income and market-based approaches, and provides examples of how valuations are determined for startups at different stages. Valuation is presented as a multifaceted process that considers both tangible and intangible factors, and depends on the specific investor, deal terms, and negotiation between the founder and investor.
The document provides an overview of what constitutes a startup business versus a small business. It explains that startups require significant funding to achieve high growth rates and add value through generating jobs and wealth. The key aspects of a startup that it outlines are the need for a team-driven approach, appetite for risk-taking, and focusing business plans for investors on the team and market opportunity rather than extensive details. It also summarizes how venture capital firms operate by collecting funds from investors to invest in startups.
This document provides guidance on conducting an opportunity assessment for sales opportunities. It outlines key questions to consider in areas such as determining if there is a real opportunity, assessing competitiveness, determining if the opportunity can be won, and deciding if it is worth pursuing. The goal is to structure the opportunity qualification process, qualify accounts faster, and focus time and resources on the most viable opportunities. Key steps include understanding customer needs and objectives, evaluating financial factors, assessing the solution fit and competitive landscape, and identifying decision-makers and their criteria.
How to re-imagine and rethink business in a post Covid-19 world. Leading through building resilience in self and business and shining light in a new world business environment.
Leading in Changing Times: YourSelf and Your BusinessAnjana Vivek
We operate in a volatile and uncertain environment, across geographies, across industries. How can you StandOut from the Clutter and be visible as a leader?
One slide checklist of investors and enablersAnjana Vivek
Which investor is right for you? This sets out types/categories of investors and a brief set of questions you need to ask yourself before setting out your funding strategy.
Start ups challenges for funding optionsAnjana Vivek
How do you choose from this range of investors and more: HNIs, informal and formal Angel groups,Seed Funds,Venture Capital, Private Equity, Banks, Strategic Investors, Corporate Funds; (Family) Business Groups, Indian & Global, Government supported funds, Impact Investors, Incubators, Accelerators, Crowd funding, Online funding platforms
Session on Co-Founder conflict cases or challenges that startups with multiple co-founders face during different stages of their company ( before and after fund-raising) - How do the founders ideally plan for these, and if not planned, how does one find solutions to resolve them when they encounter such challenges.
This document outlines the financial investment rounds and exit for a startup company from its founding in Year 0 through its sale in Year 6. It shows the founders' declining ownership percentages as new investors provide funding in angel rounds, seed rounds, and a venture capital round. By Year 6, the company was acquired for Rs. 60 crores, providing a significant return on investment for all investors. Specifically, Angel/seed round 1 investors saw a 14.4x return over 5 years, Angel/seed round 2 investors saw a 9x return over 4 years, and VC investors saw a 3x return over 3 years. While profitable for investors, other factors like ESOP impact, taxes, and valuation methods are also relevant to consider.
One Two Four Entrepreneurial Financial StrategiesAnjana Vivek
This document discusses various topics related to entrepreneurial financial strategies. It addresses how to develop financial forecasts and business models, consider different factors that influence valuation of entrepreneurial ventures, prepare for negotiations around valuation and deals, plan transitions to new stages of growth and roles of stakeholders. Key aspects covered include developing short, medium and long term financial plans, reviewing funding options, creating and updating financial forecasts and business plans, conducting due diligence and managing cash flows and working capital needs in entrepreneurial contexts.
Private equity involves various types of investments including venture capital, leveraged buyouts, and growth capital. When seeking private equity investment, preparation is key. Entrepreneurs should develop a business plan outlining their idea, team, market analysis, financial projections, and more. They should also identify potential issues or weaknesses in the business in order to effectively address questions from investors during due diligence. Finally, entrepreneurs need to consider valuation of the business and how to negotiate from a position of strength when discussing investment terms with private equity firms.
This document discusses various aspects of business planning and attracting investors. It covers identifying investor types, project requirements, building a business plan, and conducting due diligence. Key points include outlining investor options like VCs, angels, banks; requirements like a strong team, large addressable market; components of business plans and due diligence reviews that evaluate areas like sales, accounting, and value creation. The overall content provides an overview of planning and fundraising considerations.
The document discusses various methods for valuing companies, including cost-based methods like book value and replacement cost, income-based methods like earnings capitalization and discounted cash flow, and market-based methods. It notes that valuation depends on factors like management, performance, projections, industry, and the transaction context. The valuation process involves considering financial and non-financial factors, using multiple models, and arriving at a valuation range. Special situations like multi-business companies, M&A, and cyclic businesses require tailored applications of valuation models.
The document provides guidance on writing an effective business plan in 3 or fewer sentences:
The document discusses the purpose of a business plan, highlighting that it can be used for fundraising, reporting to investors or boards, or internal goal setting. It emphasizes analyzing strengths, weaknesses, opportunities, and threats, considering different reader perspectives, and maintaining consistency and brevity. The key is to concisely communicate the business idea, team, market, competition, strategy, and financials.
Preparing A B Plan For Equity InvestmentAnjana Vivek
The document provides guidance on preparing an effective business plan for seeking equity investment. It advises considering the perspective of an equity investor, who will be looking for a company that can significantly increase in value over 4-5 years through rapid growth. The business plan should clearly outline the business idea, team, market opportunity, marketing strategy, competition, financial projections, and other key details. Presenting the plan in a clear, concise format is important to engaging the investor.
Explore the key differences between silicone sponge rubber and foam rubber in this comprehensive presentation. Learn about their unique properties, manufacturing processes, and applications across various industries. Discover how each material performs in terms of temperature resistance, chemical resistance, and cost-effectiveness. Gain insights from real-world case studies and make informed decisions for your projects.
2. VentureBean Consulting Private Limited
At the start: The Foundation
Strategic Financial Planning
Financial Forecasts
Select Areas: Costing&Pricing / Governance&MIS
Valuation and Value Creation
In Summary
Agenda
2 2
3. VentureBean Consulting Private Limited
BEFORE YOU START: The Foundation
• WHAT is your Dream?
• Dreams get you started
Best
.. LARGEST..
.. first..
.. contribute..
.. impact..
.. change..
3
4. VentureBean Consulting Private Limited
BEFORE YOU START: The Foundation
• WHAT is your motivation .. for this Dream?
NAME
FAME
MONEY
IMPACT
….
OTHER
4
5. VentureBean Consulting Private Limited
BEFORE YOU START: Reflections
• WHAT is the stage of your business/idea now?
• WHERE do you want to go from here?
– Short Term: In the coming Year
– Medium Term: 3-5 years from today
– Long Term: 10-15 years
• Does the Long term map/connect to your
Dream?
5
6. VentureBean Consulting Private Limited
Finance and Business Planning
• WHAT does the growth plan mean in financial
terms
• Finance is the Language of Business
• The dreams need to be communicated in this
language
6
7. VentureBean Consulting Private Limited
At the start
Strategic Financial Planning
Financial Forecasts
Select Areas: Costing&Pricing / Governance&MIS
Valuation and Value Creation
In Summary
Agenda
7 7
8. VentureBean Consulting Private Limited
Financial Planning
Four items to think about:
• Revenue
• Profits/Costs
• Cash / Cash Burn
• Value
8
9. VentureBean Consulting Private Limited
Strategic Financial Planning
Three dimensions of time:
• Short term: Typically 1 year; month-wise; more
easily available, fewer assumptions
• Medium term: Typically 3-5 years; Estimates and
Guesstimates… trends
• Long term: Typically 10 – 15 years; less numbers
Action – minute to minute (Plan): Balancing Act between
planned activities and unplanned sudden requirements..
9
10. VentureBean Consulting Private Limited
Strategic Financial Planning
• Projections need to be achievable and realistic in
the immediate term.. may get into dream zones in
long term
• Periodically FLIP back and forth between time zones
• As you plan, keep an eye on the volatile business
environment, changing patterns, disruption,
expectation of the future in a few years and more
• As you work, check for patterns, consistency,
thought process..
10
11. VentureBean Consulting Private Limited
Projections are just … projections
• Periodically compare: Projections vs. actuals
• Try to see where the difference between reality
and projection is and the reason for this
– Is the difference due to errors in assumptions made
– due to ecosystem changes or..??
• This helps you
– understand your business and yourself better
– get a better sense of how well you can project
– project better the next time around
• Update the projections to reflect reality, this is a
continuous and iterative process
11
12. VentureBean Consulting Private Limited
Strategic Financial Planning
• Forecasting is like a game of probability.. of
scenarios and chance.. with a dose of reality
thrown in
• “To Trigger Thinking” you may also like to
prepare with different scenarios in mind
– Pessimistic, realistic and optimistic
– Boot-strap and funded
– With alternate business models; impacting strategy
and cash flow
– And more..
12
13. VentureBean Consulting Private Limited
At the start
Strategic Financial Planning
Financial Forecasts
Select Areas: Costing&Pricing / Governance&MIS
Valuation and Value Creation
In Summary
Agenda
13 13
14. VentureBean Consulting Private Limited
FINANCIAL FORECAST: Overview
• This is based on and driven by your business
model
• It helps to spend significant time thinking of your
business strategy and business model
• A business model develops and evolves over
time – it is not static
15. VentureBean Consulting Private Limited
FINANCIAL STATEMENTS
BALANCE SHEET: The State of affairs of the
organization:
• PROFIT AND LOSS ACCOUNT: Working results for a
given period:
CASH FLOW STATEMENT: Cash receipts & payments
during a period:
• If you do not understand the basics of financial statements
please take time to learn basics.
• Reference
http://www.slideshare.net/rajnishsingh92351/understandin
g-business-finance
15
16. VentureBean Consulting Private Limited
Where the entrepreneur did not track finance
• A services business took advance in cash. The
founder, Tim Perry did not keep track of project-
wise expenses, on a regular basis. At the time of
finalization of accounts, 4 months after a project
was completed, Tim found out that he had made
a substantial loss in the project. He realised that
if he had tracked expenses, he could have
contained expenditure and perhaps even been
profitable in this key project.
• If you had been the founder what would you
have done differently, to avoid the situation
above?
• How can Tim take corrective measures to
address this loss?
FINANCIAL STATEMENTS: Caselet
17. VentureBean Consulting Private Limited
Where the entrepreneur did not track finance
• Ram Kumar focused on sales and operations. He
did not know how to read and interpret financial
statements. After two years of business, there was a
conflict between him and his co-founder Dinesh.
Ram was given a statement showing loss in the
business. Ram was shocked because he had
expected the business to be profitable. He felt that it
was his mistake in not keeping track of the finances
on a periodic and regular basis.
• If you had been the founder what would you
have done differently, to avoid the situation
above?
• Is there any way in which Ram can address this
issue?
FINANCIAL STATEMENTS: Caselet
18. VentureBean Consulting Private Limited
Look at
• Various revenue streams
• Capital expenditure (land, computers,
vehicles, furniture etc.)
• Revenue expenditure (Salary, raw material
cost, maintenance and repair costs etc.)
You may be able to convert a capital
expenditure into a revenue and vise-versa
.. HOW?
FINANCIAL FORECAST: Overview
19. VentureBean Consulting Private Limited
Think through
• Requirements of cash infusions at different
stages of the business
• Resource constraints
• Possible valuations at these stages
FINANCIAL FORECAST: Overview
20. VentureBean Consulting Private Limited
FINANCIAL FORECAST: Preparation
• Uncertainties and unknowns can be captured
through:
– Scenario and sensitivity analysis
– Templates that allow for different scenarios – i.e.
optimistic, pessimistic, expected. For example
making the changes in the input, the output
financials should show the impact
• Use tools available – i.e. spreadsheets
• Link and create templates, suitable to your
requirement
21. VentureBean Consulting Private Limited
Financial Forecasts
• Key elements in a forecast
– Revenue
– Costs: operational, sales and general administration
– Capital expenses
– Working capital expenses
– Earnings
– Tax, interest and other costs
– Sources of funding
– Uses of funding
• Reference
http://www.financialexpress.com/news/forecast-
financials-in-a-business-plan/83853/0
21
22. VentureBean Consulting Private Limited
At the start
Strategic Financial Planning
Financial Forecasts
Select Areas: Costing&Pricing / Governance&MIS
Valuation and Value Creation
In Summary
Agenda
22 22
24. VentureBean Consulting Private Limited
Life cycle costing
Cost of product from start to finish, for example,
• if a mobile phone is built, if the R&D costs are
high for the company, the repairs and
maintenance cost to the customer may be low
• Buildings of stone instead of brick and mortar
require less lifetime painting and maintenance
costs
25. VentureBean Consulting Private Limited 25
Life cycle costs
• Upstream costs
– R&D, design, prototyping, testing, quality
development
• Manufacturing/Operations costs
– Purchasing, manufacture/service
• Downstream costs
– marketing, sales and distribution, customer
service and warranty
26. VentureBean Consulting Private Limited 26
Implementation of LCC
• Identify stages in product life cycle
• Identify target customer
• Understand target customers perspective and
estimate need
• Understand costs over multiple users
• Analyse cost and pricing in detail
27. VentureBean Consulting Private Limited 27
Pricing
• Intuitive
• Rule of thumb
• Trial and error
• Discount
• Premium
• Cost based
• Mark up
28. VentureBean Consulting Private Limited 28
Pricing decisions
Influenced by
• Costs
• Competitors
• Customers
• Time horizon – short run or long run decisions
• Strategic reasons
29. VentureBean Consulting Private Limited 29
Pricing for long run
• Important to consider long term pricing for
long term sustainability and growth of
business
• Initial pricing and short term pricing should
keep long term pricing in mind
• Image and brand of business to be
considered in pricing
• Costs to be understood and allocated
• Consistency in pricing in long term
• Target segments to be considered
30. VentureBean Consulting Private Limited 30
A cup of coffee
• A cup of coffee costs Rs. 15 to make
• HOW will you plan to price this?
……….. continued..
31. VentureBean Consulting Private Limited 31
A cup of coffee
• Will you charge based on the price of coffee in
similar coffee shops and restaurants?
……….. continued..
34. VentureBean Consulting Private Limited 34
A cup of coffee
For example ..
• You could charge differently during the rush
hour
• You could have special rates in non rush hours
• i.e. you could differentiate between your
customers, and charge different rates …
just like the airlines do!
35. VentureBean Consulting Private Limited 35
Some thoughts…
You can … if you want
• Think differently about your pricing
• Think differently about your negotiations for pricing and selling
• Experiment with pricing..
• For example in e-commerce: a seller experimented with
the same total sales price; in one case shipping and
handling was shown as included, in the other cases the
two were shown separately. The sales pattern showed
a difference.
• Pricing can therefore sometimes be a matter of trial and
error
36. VentureBean Consulting Private Limited
Measure, review, correct.. measure..
• Have you prepared a business plan with financial
forecasts?
• Is this business plan an implementable one or is it
just on paper?
• Have you compared the actual numbers with the
business plan numbers?
• What are the signals you get when you compare
actuals with forecasts?
• Regular capturing, monitoring and analysis of data is
an important and critical part of planning.
36
37. VentureBean Consulting Private Limited
Measure, review, correct.. measure..
• Capture data periodically;
monthly/fortnightly/weekly …
• Design a reporting Management Information
System (MIS) to evaluate
– the Key Performance Indices (KPIs)
– Key Value Drivers and
– Key Value Depleters
• Reference:
• http://bangalore.citizenmatters.in/blogs/entrepren
eur-s-corner/blog_posts/135-business-plan
37
38. VentureBean Consulting Private Limited
Measure, review, correct.. measure..
• An individual measures height, weight, BP, sugar
levels etc.. as key parameters for wellness
• What are the Wellness and Value measures for
your business/idea?
– Top Line: Revenue
– Bottom Line: earnings/profits
– Cash Flow
– Number of employees
– Key costs
– More illustrative parameters to follow in next few
slides..
38
39. VentureBean Consulting Private Limited
Quality parameters - Example
• QUALITY CAN IMPACT VALUATION MULTIPLE
• Illustrative parameters, for sales
– Sales Quantity
– Quality of revenue - in terms of
product/service/vertical/location etc.
– Average revenue per employee
– Number of customers, number of high value customers
– Number of customers who are above a certain revenue or
category, eg. MNC’s, listed companies ..
– New customers added
– Customers lost
– Pipeline customers
– Etc.
39
40. VentureBean Consulting Private Limited
Measure, review, correct.. measure..
• More illustrative indicative parameters
– Key expenses
– Number of employees
– Average cost per employee
– Receivables and payables
– Cash balance
– Key assets
– Loans outstanding
– Equity capital
40
41. VentureBean Consulting Private Limited
Measure, review, correct.. measure..
• Design MIS with care:
– too little information is not helpful
– too much data can be counter productive
• Analyse data, look for patterns and trends, recast
– Check for variances over time, with underlying causes
– Compare with benchmark companies
– Factor learnings into business strategy and action plan
– Recast and redo projections and plan if required
• Periodically revisit the MIS framework and add or
update parameters
41
42. VentureBean Consulting Private Limited
At the start
Strategic Financial Planning
Financial Forecasts
Select Areas: Costing&Pricing / Governance&MIS
Valuation and Value Creation
In Summary
Agenda
42 42
43. VentureBean Consulting Private Limited
Strategic Planning – Creating value
• Alliances and partnerships, whether relating to
advisors/mentors or to operations or to
investment should lead to value creation not
value depletion
• Understand financial and non-financial aspects
of business and transactions and impact on
growth and sustainability
• Most importantly, is it adding to your brand
perception in the market or depleting from this
43
44. VentureBean Consulting Private Limited
Strategic Planning – Creating value
• Preparing for alliances and partnerships across
the life cycle, this includes
– Partner identification
– Due diligence review
– Forecasts and valuation (with and without deal)
– Negotiation, acceptable and non-acceptable terms
(deal breaker and deal maker issues)
– Other deal terms and conditions
– Deal closure
– Post deal integration
– Exit plan if required for eg. for VC
44
45. VentureBean Consulting Private Limited
Valuation
• Based on
– Tangibles and intangibles
– Data and assumptions
– Subjectivity and objectivity
• Many methods of computation including but not
limited to
– Multiples of revenue, earning, user base etc
– Cash flow based, discounted
– Exit valuation
– Cost based
• Must factor statutory, accounting, tax implications
45
46. VentureBean Consulting Private Limited
Valuation
• Driven by markets including flavor of season,
competitive scenario, team at helm etc.
• Driven by percentage of stake offered,
negotiation etc.
• Driven by demand vs. supply
• Deals can sometimes be structured to
accommodate valuation perceptions; by linking
to future performance etc.
• For more on valuation: detailed notes are at
http://www.slideshare.net/anjanavivek/valuation-
basics (from the popular set of the TOP 4% and
5% viewed on SlideShare in 2013, 2014)
46
47. VentureBean Consulting Private Limited
At the start
Strategic Financial Planning
Financial Forecasts
Select Areas: Costing&Pricing / Governance&MIS
Valuation and Value Creation
In Summary: Beyond Finance
Agenda
47 47
48. VentureBean Consulting Private Limited
MOST IMPORTANTLY
Entrepreneurship needs an understanding of
• People
• Business
• Environment
• Deal issues
• Synergies
In addition to finance..
48
49. VentureBean Consulting Private Limited
Financial Planning
• Finance involves
– Financial planning
– Resource allocation
– Funding strategy
– Managing working capital needs
– Managing cash
– Monitoring, measuring, governance systems
– Understanding impact of business model on
finance/strategy/cash flow
– Value creation
– And more
49
50. VentureBean Consulting Private Limited
MOST IMPORTANTLY
• Finance is important to survival, sustainability
and success; however finance is not everything
• As …
All the entrepreneurs who have money are
not successful
&
All those with no money or limited money are
not unsuccessful
50
51. VentureBean Consulting Private Limited
MOST IMPORTANTLY
• Finance is important to survival, sustainability
and success; however finance is not everything
• As…
All VC funded companies do not succeed
&
All non-funded companies do not fail
51
52. VentureBean Consulting Private Limited
In Summary
• Take care and plan well ..
• Execute .. Monitor.. Evaluate.. Adjust.. Update..
Execute..
• And Success will come your way
52
53. VentureBean Consulting Private Limited
In Summary
• Wishing you all the Very Best in your Entrepreneurial Journey
• Delighted to invite you to view/follow for periodic insights, class
notes & more, from thought leaders, academicians…
@ The VentureBean K.Hub: (Knowledge Hub)
http://www.linkedin.com/company/venturebean-consulting-private-
limited
https://twitter.com/VentureBean
www.slideshare.net/anjanavivek;
https://twitter.com/anjana_vivek
• Contact for more information and inputs: beanie@venturebean.com
53