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Finance for startup | Presentation @ 8e Colloque des Clubs Etudiants Entrepreneurs

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Finance for startup | Presentation @ 8e Colloque des Clubs Etudiants Entrepreneurs

  1. 1. Finance for Startups Xavier Corman16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 1
  2. 2. Finance for Startups • Introduction • Company Setup • Accounting • Financial Plan • Funding your startup • Valuation / Dilution16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 2
  3. 3. Who I am ? Xavier Corman16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 3
  4. 4. This presentation is available for free: http://www.slideshare.net/xaviercorman16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 4
  5. 5. Why Finance for Startups ? If you dont think about the future, you cannot have one. John Golsworthy where you want to go You need to know how you are supposed to go16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 5
  6. 6. Company Setup16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 6 6
  7. 7. Why should I ? Limit your liabilities ! Professional touch Fiscal 34% Succession ... Formalities & some costs (bank, notary, KBO/CBE, social secretary) Double entry accounting Revisor for in-natura contributions16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 7 7
  8. 8. Minimum capital Legal BVBA-SPRL (min.1) CVBA-SCRL (flexible) 18.550 EUR  6.200 EUR (or 12.400 EUR) SA-NV (min.2): 61.500 EUR REAL minimum = Business required !16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 8 8
  9. 9. Shareholders  Control (>51%) Absolute / Relative majority 40% - 60% 40% - 10% - 10% -10% -10% -10% -10% Voting Rights Class A & B Minority (blocking) interest Investors per phase (dilution)! Stock options: fiscal implications, buyer required vesting conditions : targets, period (4y)16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 9 9
  10. 10. Hats/Personalities Founders – Shareholders Founders: (Board) 3 years responsibility Owners CEO (gérant/zaakvoerder) General Manager Directors CxO Employees16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 10 10
  11. 11. Accounting: notions • Balance Sheet – Bilan – Balans • Profit & Loss – Compte de résultat – Winst-en Verliesrekening • Cash-flow – Trésorerie – Schatkist • Financial Plan – Plan financier – Financieel Plan16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 11
  12. 12. Accounting: Balance Sheet ACTIVE PASSIVE Equity (Capital/Kapitaal) Non Current Assets (Actifs Immobilisés/ Vast Activa) LT Debts Current Assets (Actifs circulants/ Vlottend Activa) ST Debts16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 12
  13. 13. Accounting: Profit & Loss (P&L) COGS (Cost of Sales) Personnel Costs Gross margin General Expenditures Revenues (Sales…) Added Value Depreciation EBITDA Financial cost Profit16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 13
  14. 14. Financial PlanContent – Assumptions – Profit & Loss – Balance Sheet / Investment – Cash-Flow -> Cash needed – Valuation of the project – Profitability / return of the project16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 14
  15. 15. Financial Plan in 10 min• Don’t waste your time in developing a huge financial plan before to be sure that your project is viable !• In many case, in less than 10 minutes, you can see if your idea worth something.• How to make a very quick financial plan ?16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 15
  16. 16. Financial Plan in 10 min /questions What are your revenues ? What are your costs ? What are your investments ? How many persons for your project ?16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 16
  17. 17. Financial Plan / Prerequisites & Assumptions• Financial plan for 3 to 5 years• Monthly or Quarterly base• Excel or Calc is your friend• Start by listing your main assumptions16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 17
  18. 18. Financial Plan / Tips for assumptions• Office: 25 m²/person• Price of offices: EUR 100/m²/year + 15 % for maintenance• Insurances: 1 % of revenues• Marketing: define a % of revenues + starting investment• Don’t forget lawyers, accountant, social secretary, office supplies…16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 18
  19. 19. Financial Plan / Profit & Loss Revenues (Sales…) COGS (Cost of Sales) General Expenditures COSTS Personnel Costs Financial cost Depreciation CASH CASH-FLOW IF NEGATIVE DRAIN Profit16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 19
  20. 20. Financial Plan / Investments List all your scheduled investments YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 516/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 20
  21. 21. Required Cash-Flow16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 21
  22. 22. Funding, ‘Financing’ And entrepreneurs? They seem to have confused the definition of entrepreneurship altogether. Entrepreneurship, they mistakenly believe, equals financing! This is wrong. Over 99% of entrepreneurs who seek funding get rejected. Yet, the entire world is focused on the 1% that is "fundable." http://www.readwriteweb.com/start/2012/01/the-other-99-of-entrepreneurs.php16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 22 22
  23. 23. http://www.ideaowl.com/blog/2011/06/microconf-2011-3-surprises- and-learnings-from-best-conference-ever/16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 23
  24. 24. How to finance your start-up ? Clients FFF Suppliers BA Banks VCShareholders Crowd Equity LT Debts ST Debts Public Banks Shareholders 16/03/2013 07/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 24
  25. 25. Valuation• The value of any business is the present value of the future income stream• You sell future virtual profits for present real money16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 25
  26. 26. Valuation Exit Money Sweat Money Year 1 Year 2 Year 3 Year 4 Year 5 Year 616/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 26
  27. 27. Valuation - What is dilution ? 100% 15% 20% 90% 25% 80% 12% 70% 15% VC 2 60% 9% VC 1 50% 85% BA 40% 68% Founder(s) 30% 51% 20% 10% 0% Start 1st Round 2nd Round16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 27
  28. 28. Questions & Answers Free download: http://www.slideshare.net/xavierCorman16/03/201307/02/2012 Xavier Corman | Martin van Wunnik Xavier Corman 28

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