Spinning the Wheel of Fortune Thomas Depuydt

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CASH IS KING

“Whether you’re rich or poor, it’s good to have money”

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CASH IS KING

• Cash in the bank

• Cash is going out

• Cash is coming in

• Months ‘Runway’

No excuse for not

knowing these

numbers

Sources of cash

REVENUE FREE(SUBSIDY)

INVESTME

NTS

Sources of cash

REVENUE FREE(SUBSIDY)

INVESTME

NTS

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Investment products

Perceived

Risk

Expected

Return

Asset-Backed

Secured Loan

Straight Loan

Convertible

Loan

Preferential

Equity

Common

EquityBanks

BA, VC

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What story to tell

Asset-Backed

Secured LoanStraight Loan

Convertible

Loan

Preferential

Equity

Common

Equity

Provide comfort on

the downside

Sell them upside /

story

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What story to tell

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What story to tell

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Fundraising lottery?

“”

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Luck favors the

prepared“Souvenez-vous que dans les champs de l'observation le hasard ne favorise que les esprits préparés.”

Louis Pasteur

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Pack everything you

need

How to prepare fundraisingSeries A

Search the Web for

Info

Read a Book Learn Basic

Vocabulary

Ask tips from People

with Experience

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Make sure the math works

IRR

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Make sure the math works - example

Investment Exit

(€2M) >€10MVC cash

33%VC stake 25%

€6MValuation >€40M

Multiple x10 X3-4

Revenue €600K >€10M

5 years

IRR – target 35%

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Make sure the math works - example

Investment Exit

(€2M) >€10MVC cash

33%VC stake 25%

€6MValuation >€40M

Multiple x10 X3-4

Revenue €600K >€13M

5 years

IRR – target 35%

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Make sure the math works - example

Investment Exit

(€2M) >€10MVC cash

33%VC stake 25%

€6MValuation >€40M

Multiple x10 X3-4

Revenue €600K >€13M

5 years

IRR – target 35%

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Make sure the math works - example

Investment Exit

(€2M) >€10MVC cash

33%VC stake 25%

€6MValuation >€40M

Multiple x10 X3-4

Revenue €600K >€13M

5 years

IRR – target 35%

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Don’t shoot yourself in the foot

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Irrelevant Statement on Market

“According to Gartner, the internet of things

industry in Europe will reach 10 trillion dollar in

2020. Our business plan assumes we will take 1%

of this market.”

Still one business plan out of three

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Wrong Assumptions on Simple Facts

“We will hire an experienced business

development profile with sector knowledge to

launch international sales. Our estimated cost for

that person is €35,000”

Motivated entrepreneur

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Unprofessional Behavior

“Thanks for introducing that company to us. We

have been exchanging emails in the past with

them. They were going to send some time slots for

a meeting but never got back to us.”

VC Investor

Key Takeaways

• Cash is King

• #FOMO can be your friend

• Prepare for the journey

• Make sure the math works

• Wheel of fortune

• Irrelevant Statement on Market – 1% rule

• Wrong Assumptions on Simple Facts

• Unprofessional Behavior

Thank You