tetuan valley startup school v (session 2)
DESCRIPTION
Tetuan Valley is the first non-for-profit pre-accelerator program in Europe. Our goal is to promote local Entrepreneurship and regional development towards technologyTwice a year we host a 6 week startup school, with focus on training and working on the implementation of a business idea. We have a portfolio of more than 70 top-notch mentors, participating to give the students a unique and valuable experience. All graduates of the startup school get exclusive access to the Tetuan Valley Alumni Network.For further info please check tetuanvalley.comTRANSCRIPT
Tetuan alley
Tetuan Valley, October 2011
Startup School Fall 2011 This is the Land of Do-as-you-please-and-take-what-you-want
Week 2 #tvssv
Sponsors Collaborators
#tvssv
STARTUP FINANCE 101
28/11/11
OBJETIVE
Startup Finance 101 for non biz profile founders OUTCOMES
• Understanding of key financial indicators • Enabling entrepreneusr to set up models and criteria for startup valuaBon and investor financial presentaBon SCHEDULE
2 x 4h sessions
SESSION 1 • Key concepts • Principles • RaBos and formulas • Investors; ObjeBves and constricBons, investment stages, Venture
Capital and criBc value enhancers • Conclussions
SESSION 2 • Business planning • Pricing • Business modeling • Misc. tools
STARTUP FINANCE 101 – Session 2
28/11/11
1. The Business Plan
2. The Price
3. The Business Model
4. Other Tools
m
28/11/11
My @me is valuable… how much will I spend looking at your BP
28/11/11
28/11/11
What investors are looking for
…and so should YOU
28/11/11
Your Company
Your Investor
Your Numbers
WHAT WE INCLUDE IN A FINANCIAL 1 PAGER: COMPANY
28/11/11
l Opportunity descrip@on l Business Model l Need Sa@sfied
WHO ARE YOU
l Products / Services l Market Objec@ve l Compe@tors
WHAT DO YOU DO
HOW DO YOU ACHIVE IT
l Sales & Marke@ng Strategy l Current and Funnel Clients
l Investment Alloca@on l Exit Strategy
OPPORTUNITY FOR THE INVESTOR
WHAT WE INCLUDE IN A FINANCIAL 1 PAGER: INVESTOR
28/11/11
l Business Sector (Tags) l Contact Informa@on l Execu@ve Team l Financial Informa@on
― Investment Stage ― Current Capital ― Monthly Burn Rate ― Pre-‐Money Valua@on ― Investment Capital
l Current Investors l Forums
RELEVANT INFORMATION FOR THE INVESTOR
WHAT WE INCLUDE IN A FINANCIAL 1 PAGER: NUMBERS
28/11/11
Año1 … Año n
Revenues
EBITDA
Net Result
Assets
LiabiliBes
Cash
Mul@plier
CF Breakeven
Money… when and how much
STARTUP FINANCE 101 – Session 2
28/11/11
1. The Business Plan
2. The Price
3. The Business Model
4. Other Tools
PRICING METHODS -‐ BENCHMARK
28/11/11
Be careful l What you compare l Units l Time l Loca@on
Tabulate data and present in graphs or simple tables
Useful for similar products Difficult to obtain data
PRICING METHODS -‐ MARKUP
28/11/11
Be careful l Over price l Cost Alloca@on l Unitary marginal, variable and fixed cost
Useful for established products in compe@@ve atmosphere Always lower limit Easy to obtain data… your company
PRICING METHODS – VALUE ADDED
28/11/11
Be careful l What are the needs of the client
l Determine the value per use
Useful for breakthrough technologies Clearly explain the gains the client will have Difficult to obtain data Always upper limit
STARTUP FINANCE 101 – Session 2
28/11/11
1. The Business Plan
2. The Price
3. The Business Model
4. Other Tools
What makes your business @ck Up and Down… almost ALWAYS is related
28/11/11
How to determine your business drivers
28/11/11
How
How
How
How
How
Target: Commercials in FMCG companies 5.000 users first year , recurrent and growing
Go to 5 of the 100 companies in the market Market Average is 1000 users/ client
Do you s'll have 5.000 Users? 1
I personally (or my network) know 5 decision takers in those companies, iniBal prospecBon has been made
Do you s'll have 5.000 Users? 2
Are my clients going to demand a trial phase Do you s'll have 5.000 Users? 4
Success in conversion rate from trial to client? Do you s'll have 5.000 Users? 5
Do de companies have control over the users? Do you s'll have 5.000 Users? 3
Usefulness
28/11/11
Target: Commercials in FMCG companies 5.000 users first year , recurrent and growing
MarkeBng / Sales Strategy
Scalability
Success of product / service
Go to 5 of the 100 companies in the market Market Average is 1000 users/ client
Do you s'll have 5.000 Users? 1
I personally (or my network) know 5 decision takers in those companies, iniBal prospecBon has been made
Do you s'll have 5.000 Users? 2
Are my clients going to demand a trial phase Do you s'll have 5.000 Users? 4
Success in conversion rate from trial to client? Do you s'll have 5.000 Users? 5
Do de companies have control over the users? Do you s'll have 5.000 Users? 3
Revenue Streams
28/11/11
Asset Sale
Usage Fee
Subscrip@on Fee
Lending / Ren@ng / Leasing
Licensing
Brokerage / Commissioning
Adver@sing
28/11/11
Don’t be afraid… Your own matrix … We will help you with an standard
28/11/11
STARTUP FINANCE 101 – Session 2
28/11/11
1. The Business Plan
2. The Price
3. The Business Model
4. Other Tools
28/11/11