Deepak Shenoy presents at the Lean Startup Machine in Bangalore, April 2013. The presentation couldn't be completed on schedule, unfortunately. The slides are here. Read the [long] article that explains these slides in Five Myths of Being a Financially 'Lean' Startup (http://capitalmind.in/2013/04/five-myths-of-being-a-financially-lean-startup/) Please connect with deepakshenoy [at] gmail if you have any questions or comments.

1. MYTHS OF BEING LEAN & MONEY
Deepak Shenoy
Capitalmind.in

2. Questions
 Started Up Before?
 Have Families?
 Won’t Do a Startup Unless Funded
 Or without a salary
 Or only “part time”
 Understand Equity/Debt?

3. 1. Can Startup With Nothing
 Everything’s cheap now
 Amazon web services
 Open source software
 Cheap laptops + internet
 Can scale endlessly
 Build it and they will come
 Facebook
 Google
 Myspace (oh, wait)

4. Can Startup With Nothing?
 Not Anymore.
 Marketing takes a lot – and it’s important.
 Hiring/retaining costs money
 Some startups NEED op-ex and cap-ex
 E-commerce
 Travel
 Regulatory compliance costs
 Deposits

5. How Much?
 Thumb rule: 18 months
 And not just ‘visible’ expenses
 Thumb rule: Calculate all expenses
 And…

6. 2. I have Revenues..or
Something
 Someone paid me
 I got so many eyeballs
 I’m working on marketshare

7. Cash Flow
 Money In and Money Out
 You lose all your chips, you can’t play
 Cash Flow is your only friend. Keep it positive.

8. 3. Equity Funding Is Better
 The Difference
 The Choice
 The Bridge
 Regulation

9. 4. Banks Don’t Fund Startups
 Really? How many have tried?
 Get Started.
The Car
The
“overdraft”
The Grants
The PSU
Bank
The Export
Funding

10. 5. The Worst Thing That Can
Happen
 Is that you run out of money.

11. The Worst Thing That Can
Happen
Is that you run
out of growth.

12. Five Startup Things About
Money
 We’re starting up with nothing
 Cash Flow > Everything
 Equity Is BetterThan Debt?
 Banks don’t fund startups
 TheWorst thing is to run out of money.

13. Questions?
 Deepak Shenoy
 deepakshenoy@capitalmind.in
 http://capitalmind.in