1. Cleantech Open
2013 Webinar Series
Tuesday, August 6, 2013

2. 2 Cleantech Open Confidential Information – All Rights Reserved
Welcome to the National Webinar Series
• With the Cleantech Open since 2007
• Mentor Chair 2007 - 2008
• Executive Director 2008 - present
MC:
Rex Northen,
Executive Director, Cleantech Open

3. 3 Cleantech Open Confidential Information – All Rights Reserved
Global Partner

4. 4 Cleantech Open Confidential Information – All Rights Reserved
National Sponsors

5. 5 Cleantech Open Confidential Information – All Rights Reserved
Thank You To All Our Sponsors!

6. 6 Cleantech Open Confidential Information – All Rights Reserved
The Summer Program – July – September 2013
Date Time
(PDT)
Session I – Worksheets Time
(PDT)
Special Topic Sessions
7/9
1:30 to
2:30pm
Business Model Canvas (Review)
2:45 to
4:00pm
LaunchPad Central (Review)
7/16
1:30 to
2:30pm
Product/Market Fit
2:45 to
4:00pm
Systems Review, PR 101
7/23
1:30 to
2:30pm
Markets and Getting to Them
2:45 to
4:00pm
Term Sheets
7/30
1:30 to
2:30pm
Product/Technology Validation
2:45 to
4:00pm
Alternative Sources of Funding - Grant
Writing / Crowd Sourcing
8/6
1:30 to
2:30pm
Financials Analysis & Planning
2:45 to
4:00pm
Review of Worksheets to date
8/13
1:30 to
2:30pm
Legal Environment, Issues and Risks
2:45 to
4:00pm
Cap Tables
8/20
1:30 to
2:30pm
Management Team
2:45 to
4:00pm
Working with the Utilities
8/27
1:30 to
2:30pm
Sustainability
2:45 to
4:00pm
Tell Your Story, Sell Your Story
(Communicating value to stake holders)
9/10
1:30 to
2:30pm
Last Chance For Questions
2:45 to
4:00pm
IP Licensing from 3rd Parties
9/11
1:30 to
2:30pm
Investor Presentation
Mentor Assessment
2:45 to
4:00pm
Mock Judging, Regional Awards, Global
Forum

7. 7 Cleantech Open Confidential Information – All Rights Reserved
Session 1: Financial Analysis & Planning
1:30pm – 2:30pm, PDT
• 30 year technology industry
veteran, having run global
businesses based in USA and Asia
• Practitioner Lead Faculty for
Strategy in the School of Business
Speaker:
Niraj Kohli
President, CSC
• 18 years - provided strategic and
M&A advisory, capital raising, &
financial modeling services for large
corporations, renewable energy
developers, middle market
companies and early stage
companies
Speaker:
Timothy Hoffman
Managing Director,
Watts Capital, LLC

8. Cleantech Open
Financial Analysis and Planning
By
Niraj Kohli - University of Phoenix
Tim Hoffman – Watts Capital / Cleantech Open

9. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Copyright © 2013 University of phoenix. All rights reserved. Reproduction in copies, distribution to others,
preparation of modified or derivative works, or sublicensing others without express written consent of
University Phoenix is prohibited.
University of Phoenix webinars include content from: businessmodelgeneration.com and from Business
Model Generation: A Handbook for Visionaries, Game Changers, and Challengers [ISBN: 978-0-470-
87641-1] by Alexander Osterwalder and Yves Pigneur, (hereafter referred to as the “Work”). Copyright ©
2010 by Alexander Osterwalder and Yves Pigneur. All rights reserved. Used by arrangement with John
Wiley & Sons, Inc. Unless John Wiley and Sons, Inc.’s (“Publisher”) express prior written permission is
obtained, it is prohibited to (a) remove or alter the author’s name, Publisher’s copyright notices, or other
means of identification or disclaimers as they appear in the Work; (b) make electronic copies of the Work
other than as permitted pursuant to Section 1.1 of Agreement between Publisher and Apollo Group, Inc.
“(Apollo”); (c) mount or distribute any part of the Work on any electronic network (including without
limitation, the Internet and the World Wide Web) other than the Sites; (d) use all or any part of the Work for
the purposes of monetary reward by means of sale, resale, loan, transfer, hire, or other form of distribution
of the Work; (e) distribute the whole or any part of the Work to anyone other than Authorized Registrants (as
defined in the Agreement between Publisher and Apollo; (f) publish, distribute, or make available the Work,
works based on the Work or which combine it with any other material, other than on the Sites as expressly
permitted in this Agreement between Publisher and Apollo.

10. This webinar is a 60-minute meeting
presented as part of the Cleantech Open,
which focuses specifically on finances and
funding.
Cleantech Open Webinar No 5
by University of Phoenix

11. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Agenda
o Value Creation in context of Finances and Funding through Financial Analysis
 10 minutes
o Developing Financial Models for Early Stage Enterprises
 10 minutes
o Applying Business Model Innovation to Create Value
 10 minutes
o Scenario Analysis
 10 minutes
o Funding – Sources and Environment
 10 minutes
o Questions
 10 minutes

12. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Financial Analysis & Planning Worksheet and Judging Criteria
Worksheets
• Validating The Financial Model
o Fixed/Variable Costs
o Margins
o Customer Acquisition Costs
o Break Even
• Scenarios
o Best, Worst, Most Likely
• Best Source of Financing – for your company
Judging Criteria
• How credible are the revenue and cost projections?
• Does the team understand how much funding they will need and where they will get it, and
does their financing strategy make sense?

13. Cleantech Open Webinar No 5
by University of Phoenix
Understanding Value Creation in context of
Business Model through financial
modeling, Analysis, budgeting, and
analysis for early-stage enterprises

14. Cleantech Open
Webinar 5 – Financial Analysis & Planning
How to Get Business Model Right?
Stay Focused on Value Creation, Capturing and Sustaining!

15. Cleantech Open
Webinar 5 – Financial Analysis & Planning
(VP)
VALUE
PROPOSITIONS
(CH)
CHANNELS
(CR)
CUSTOMER
RELATIONSHIPS
(CS)
CUSTOMER
SEGMENTS
(R$) REVENUE STREAMS(C$) COST STRUCTURE
(KP)
KEY
PARTNERSHIPS
(KR)
KEY
RESOURCES
(KA)
KEY
ACTIVITIES
Customer view – Front StageOperations view- Back Stage
Economics view – Business Performance Stage
businessmodelgeneration.com

16. Cleantech Open
Webinar 5 – Financial Analysis & Planning
What are the key financial metrics?
Cash

17. Cleantech Open
Webinar 5 – Financial Analysis & Planning
What types of financial information are key to a start-up business?
Revenue

18. Cleantech Open
Webinar 5 – Financial Analysis & Planning
What types of financial information are key to a start-up business?
Cost.
Burn rate of a start-up business (the monthly cost of staying in business)

19. Cleantech Open
Webinar 5 – Financial Analysis & Planning
What types of financial information are key to a start-up business?
Gross Margin (unit)
ASP
Direct
Cost
Gross
Margin
(unit)

20. Cleantech Open
Webinar 5 – Financial Analysis & Planning
What are the costs of relationships?
Customer

21. Cleantech Open
Webinar 5 – Financial Analysis & Planning
What are the costs of relationships?
Supplier

22. Cleantech Open
Webinar 5 – Financial Analysis & Planning
What are the costs of relationships?
Developer

23. Cleantech Open
Webinar 5 – Financial Analysis & Planning
What are the key financial metrics?
Inventory

24. Cleantech Open
Webinar 5 – Financial Analysis & Planning
What are the key financial metrics?
Cycle Time
This metric measures liquidity risk (how long will a
company can be deprived of cash). It’s the timespan
between disbursing and collecting cash.

25. Cleantech Open
Webinar 5 – Financial Analysis & Planning
What types of financial information are key to a start-up business?
Capital Needs

26. Cleantech Open
Webinar 5 – Financial Analysis & Planning
What types of financial information are key to a start-up business?
Cash Flow

27. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Are there any questions?

28. Cleantech Open Webinar No 5
by University of Phoenix
Developing financial models for
early stage enterprises

29. Cleantech Open
Webinar 5 – Financial Analysis & Planning
(VP)
VALUE
PROPOSITIONS
(CH)
CHANNELS
(CR)
CUSTOMER
RELATIONSHIPS
(CS)
CUSTOMER
SEGMENTS
(R$) REVENUE STREAMS(C$) COST STRUCTURE
(KP)
KEY
PARTNERSHIPS
(KR)
KEY
RESOURCES
(KA)
KEY
ACTIVITIES
businessmodelgeneration.com
Map Business Model Canvas to Financial Statements

30. businessmodelgeneration.com
CS
CR CH
VP
KA KR
KP
R$
C$
Map Business Model Canvas to Financial Statements
Cleantech Open
Webinar 5 – Financial Analysis & Planning
Revenue 1,000
COGS (750)
Gross Profit 250
Operating Expenses (275)
Interest Expense, net (16)
Pretax Income (41)
Taxes -
Net Income before dividend (41)
Dividend (25)
Net Income (66)
Cash 380
Other Current Assets 542
TOTAL CURRENT ASSETS 922
L-t Assets 350
TOTAL ASSETS 1,272
Current Liabilities 63
Debt 175
Other Liabilities -
TOTAL LIABILITIES 238
Paid-in Capital 1,100
Retained Earnings (66)
TOTAL LIABILITIES & EQUITY 1,272
Operating Cash Flow (495)
Capex (50)
Financing Cash Flow (25)
Change in Cash (570)
Beginning of Year Cash 950
End of Year Cash 380
Income Statement (IS1)
Balance Sheet (BS1)
Cash Flow Statement (CF1)

31. Beginning of Period
(Dec. 31, 2013)
End of Period /
Beginning of New
(Dec. 31, 2014)
During Period
(2014)
Cleantech Open
Webinar 5 – Financial Analysis & Planning
Revenue 1,000
COGS (750)
Gross Profit 250
S&M (150)
G&A (100)
R&D (25)
Operating Expenses (275)
Cash 950 Interest Expense, net (16) Cash 380
Other Current Assets 0 Pretax Income (41) Other Current Assets 542
TOTAL CURRENT ASSETS 950 Taxes - TOTAL CURRENT ASSETS 922
Net Income before dividend (41)
Plant, Property and Equipment 350 Dividend (25) Plant, Property and Equipment 350
IP 0 Net Income (66) IP 0
TOTAL ASSETS 1,300 TOTAL ASSETS 1,272
Current Liabilities 0 Current Liabilities 63
Debt 200 Debt 175
Other Liabilities 0 Net Income (66) Other Liabilities 0
TOTAL LIABILITIES 200 D&A 50 TOTAL LIABILITIES 237.5
Paid-in Capital 1,100 Δ WC (479) Paid-in Capital 1100
Retained Earnings 0 Operating Cash Flow (495) Retained Earnings (66)
TOTAL LIABILITIES & EQUITY 1,300 Capex (50) TOTAL LIABILITIES & EQUITY 1,272
Financing Cash Flow (25)
Change in Cash (570)
Beginning of Year Cash 950
End of Year Cash 380
Income Statement (IS1)
Balance Sheet (BS0) Balance Sheet (BS1)
Cash Flow Statement (CF1)

32. Design
Manufacture Chips
Manufacture Fixtures
Sell Lighting Fixtures
Through Own Sales
Force
Try to be like
EXAMPLE
Cleantech Open
Webinar 5 – Financial Analysis & Planning
Vertically
Integrated
Business Model

33. businessmodelgeneration.com
CS
CR CH
VP
KA KR
KP
R$
C$
Building
Production
Equipment
• Setting up Own Production is Capital
Intensive, but IP closer to home
• Our example assumes Opening
Balance Sheet with 1,100 equity and
200 debt financing
• The model will require a lot of cash as
we will see
Business Model Canvas to Balance Sheet
Cleantech Open
Webinar 5 – Financial Analysis & Planning
Cash 950
Other Current Assets 0
TOTAL CURRENT ASSETS 950
Plant, Property and Equipment 350
IP 0
TOTAL ASSETS 1,300
Current Liabilities 0
Debt 200
Other Liabilities 0
TOTAL LIABILITIES 200
Paid-in Capital 1,100
Retained Earnings -
TOTAL LIABILITIES & EQUITY 1,300
Balance Sheet (BS0)

34. businessmodelgenertion.com
• Revenue stream entirely from Products Sales
• Channel – Direct Sales, requiring Direct Sales
People Resources
• Other Key Resources include G&A and R&D
Business Model Canvas to Income Statement
businessmodelgeneration.com
CS
CR CH
VP
KA K
R
KP
R$
C$
In-house production
Mfg Labor
Materials
Product Sales
Customer
Acquisition
- Direct Sales
Sales & Mktg Staff
G&A Staff
R&D Staff
Cleantech Open
Webinar 5 – Financial Analysis & Planning
Revenue 1,000
COGS (750)
Gross Profit 250
Gross Profit Margin 25%
Sales & Marketing (150)
General & Administrative (100)
Research & Development (25)
Interest Expense, net (16)
Pretax Income (41)
Taxes -
Net Income before dividend (41)
Dividend (25)
Net Income (66)
Income Statement (IS1)

35. Cleantech Open
Webinar 5 – Financial Analysis & Planning
• FIXED COSTS (in red)- Some Costs are
completely fixed like D&A on Production
equipment, occupancy costs, etc.
• VARIABLE COSTS (in blue) include those
that move up and down depending on the
level of Revenue activity, e.g.
materials, commission and bonuses.
• DISCRETIONARY FIXED COSTS (in purple)
Costs that can be adjusted within a year.
However, many like sales staff, T&E and
advertising can have an impact on future sales
growth.
Income Statement – Fixed Versus Variable
Revenue 1,000
Labor (250)
Materials (200)
Equipment D&A (50)
Occupancy Allocation (15)
COGS (750)
Gross Profit 250
Gross Profit Margin 25.0%
Sales Staff (50)
Commission (25)
T&E (10)
Sales Support (5)
Marketing Staff (25)
Advertising/Trade Shows (25)
Occupancy Allocation (10)
Sales and Marketing (150)
Senior Mgmt Salaries (30)
Bonus (10)
Finance & Accounting (20)
HR (10)
Occupancy Allocation (15)
Office Expenses (15)
G&A (100)
R&D Staff (15)
Occupancy Allocation (5)
R&D Expenses (5)
R&D (25)
Income Statement (IS1)

36. • Understand market segment & vendor payment
norms
• Efficiencies of production and logistics determine
cash requirement for changes in inventory
• Vendor relationships have impact on payables
Map Business Model Canvas to Cash Flow Statement
businessmodelgeneration.com
CS
CR CH
VP
KA KR
KP
R$
C$
Customer Segment
Payment Norms
Vendor relationship –
industry norms
In-house Production –
Inventory Turns
Equipment Capex
Cleantech Open
Webinar 5 – Financial Analysis & Planning
Net Income (66)
D&A 50
Δ Accounts Receivable (167)
Δ Inventories (375)
Δ Accounts Payable 63
Δ WC (479)
Operating Cash Flow (495)
Capex (50)
Financing Cash Flow (25)
Change in Cash (570)
Beginning of Year Cash 950
End of Year Cash 380
Cash Flow Statement (CF1)

37. Cleantech Open Webinar No 5
by University of Phoenix
Applying Business Model
Innovation to Create Value

38. (VP)
VALUE
PROPOSITIONS
(CH)
CHANNELS
(CR)
CUSTOMER
RELATIONSHIPS
(CS)
CUSTOMER
SEGMENTS
(R$) REVENUE STREAMS(C$) COST STRUCTURE
(KP)
KEY
PARTNERSHIPS
(KR)
KEY
RESOURCES
(KA)
KEY
ACTIVITIES
businessmodelgeneration.com
- COSTS + VALUE
ELIMINATE
REDUCE
RAISE
CREATE
Blending with Blue Ocean Value Creation
Cleantech Open
Webinar 5 – Financial Analysis & Planning

39. Business Area
Standard
Approach Company
Business
Model
Innovation
Cleantech
Company
Solar
Manufacturing
Manufacturing
Panels
Cell and Panel
Manufacturers
Sell Electricity SunEdison,
SunPower,
First Solar
Residential
Solar
Installation
Installers Westinghouse
Solar, Real
Goods Solar,
REC Solar
Lease, PPA
and aggregate
SolarCity
EV / Battery Sell
Cars/battery
Fisker Karma,
Nissan Leaf,
Tesla, Th!nk
Sell Miles better place
Car Rental Rent Cars Hertz, Avis,
National
Short-term car
sharing
Zipcar
Real World Examples of Business Model Innovation in Cleantech
Cleantech Open
Webinar 5 – Financial Analysis & Planning

40. Customer
Acquisition
- Contract Sales
Variable Costs
Contract Mfg.
QC
Contract Mfg. Partner
Contract Sales /
Distribution Partner
MODEL 1 – Vertically Integrated (Fixed) MODEL 2 – Flexible
businessmodelgeneration.com
CS
CR CH
VP
KA KR
KP
R$
C$
Fixed Costs
In-house Mfg.
Labor
Equipment
businessmodelgeneration.com
CS
CR CH
VP
KA KR
KP
R$
C$
Customer
Acquisition
- Direct Sales
Cleantech Open
Webinar 5 – Financial Analysis & Planning

41. Revenue 1,000
Labor (50)
Materials (Semi-finished goods) (445)
Equipment D&A -
Occupancy Allocation (5)
COGS (500)
Gross Profit 500
Gross Profit Margin 50%
Sales Staff (20)
Commission (55)
T&E (5)
Sales Support (5)
Marketing Staff (25)
Advertising/Trade Shows (25)
Occupancy Allocation (5)
Sales and Marketing (140)
G&A (100)
R&D (25)
Income Statement (IS1) - MODEL 2
Net Income 116
businessmodelgeneration.com
CS
CR CH
VP
KA KR
KP
R$
C$
Customer
Acquisition
- Direct Sales
Customer
Acquisition
- Contract Sales
Fixed Costs
In-house Mfg.
Labor
Materials
Variable Costs
Contract Mfg.
QC
Contract Mfg. Partner
Contract Sales /
Distribution Partner
MODEL 1 – Vertically Integrated (Fixed) MODEL 2 – Flexible
CS
CR CH
VP
KA KR
KP
R$
C$
Net Income (66)
Cleantech Open
Webinar 5 – Financial Analysis & Planning
Revenue 1,000
Labor (400)
Materials (275)
Equipment D&A (50)
Occupancy Allocation (25)
COGS (750)
Gross Profit 250
Gross Profit Margin 25%
Sales Staff (50)
Commission (25)
T&E (10)
Sales Support (5)
Marketing Staff (25)
Advertising/Trade Shows (25)
Occupancy Allocation (10)
Sales and Marketing (150)
G&A (100)
R&D (25)
Income Statement (IS1) - MODEL 1

42. Net Income 116
D&A -
Δ Accounts Receivable (167)
Δ Inventories (167)
Δ Accounts Payable 42
Δ WC (292)
Operating Cash Flow (176)
Capex -
Financing Cash Flow -
Change in Cash (176)
Beginning of Year Cash 400
End of Year Cash 224
Cash Flow Statement (CF1) - MODEL 2
Contract Mfg. Partner
Supply chain mgmt
Customer Segment
Payment
Norms
Loose set of suppliers
 More flexible model
leads to improved
cash flow
businessmodelgeneration.com
CS
CR
VP
KA KR
KP
R$
C$
Direct Sales Contract Sales
Fixed Costs
In-house Mfg.
Labor
Materials
Variable
Contract Mfg.
QC
Distribution Partner
CS
CR CH
VP
KA KR
KP
R$
C$
MODEL 1 – Vertically Integrated (Fixed) MODEL 2 – Flexible
Cleantech Open
Webinar 5 – Financial Analysis & Planning
CH
Net Income (66)
D&A 50
Δ Accounts Receivable (167)
Δ Inventories (375)
Δ Accounts Payable 63
Δ WC (479)
Operating Cash Flow (495)
Capex (50)
Financing Cash Flow (25)
Change in Cash (570)
Beginning of Year Cash 950
End of Year Cash 380
Cash Flow Statement (CF1) - MODEL 1
Vendor relationships
Vendor relationships

43. businessmodelgeneration.com
CS
CR CH
VP
KA KR
KP
R$
C
$
INVESTMENT 1,300
Breakeven CF Y3
TOTAL CF Y1-3 (590)
Rolling the Model Forward Three Years – In-house Production / Capital Intensive
Cleantech Open
Webinar 5 – Financial Analysis & Planning
Year 1 Year 2 Year 3
Revenue 1,000 Revenue 2,500 Revenue 5,000
COGS (750) COGS (1,500) COGS (2,500)
Gross Profit 250 Gross Profit 1,000 Gross Profit 2,500
Gross Profit Margin 25% Gross Profit Margin 40% Gross Profit Margin 50%
Operating Expenses (275) Operating Expenses (450) Operating Expenses (700)
Interest Expense, net (16) Interest Expense, net (14) Interest Expense, net (12)
Pretax Income (41) Pretax Income 536 Pretax Income 1,788
Taxes - Taxes (198) Taxes (715)
Net Income before dividend (41) Net Income before dividend 338 Net Income before dividend 1,073
Dividend (25) Dividend (25) Dividend (25)
Net Income (66) Net Income 313 Net Income 1,048
Cash 380 Cash 136 Cash 360
Other Current Assets 542 Other Current Assets 1,167 Other Current Assets 2,083
TOTAL CURRENT ASSETS 922 TOTAL CURRENT ASSETS 1,303 TOTAL CURRENT ASSETS 2,444
L-t Assets 350 L-t Assets 319 L-t Assets 284
TOTAL ASSETS 1,272 TOTAL ASSETS 1,622 TOTAL ASSETS 2,728
Current Liabilities 63 Current Liabilities 125 Current Liabilities 208
Debt 175 Debt 150 Debt 125
Other Liabilities - Other Liabilities - Other Liabilities -
TOTAL LIABILITIES 238 TOTAL LIABILITIES 275 TOTAL LIABILITIES 333
Paid-in Capital 1,100 Paid-in Capital 1,100 Paid-in Capital 1,100
Retained Earnings (66) Retained Earnings 247 Retained Earnings 1,295
TOTAL LIABILITIES & EQUITY 1,272 TOTAL LIABILITIES & EQUITY 1,622 TOTAL LIABILITIES & EQUITY 2,728
Operating Cash Flow (495) Operating Cash Flow (193) Operating Cash Flow 274
Capex (50) Capex (25) Capex (25)
Financing Cash Flow (25) Financing Cash Flow (25) Financing Cash Flow (25)
Change in Cash (570) Change in Cash (243) Change in Cash 224
Beginning of Year Cash 950 Beginning of Year Cash 380 Beginning of Year Cash 136
End of Year Cash 380 End of Year Cash 136 End of Year Cash 360
Income Statement (IS3)
Balance Sheet (BS3)
Cash Flow Statement (CF3)
Income Statement (IS1)
Cash Flow Statement (CF1)
Balance Sheet (BS1)
Income Statement (IS2)
Balance Sheet (BS2)
Cash Flow Statement (CF2)

44. businessmodelgeneration.com
CS
CR CH
VP
KA KR
KP
R$
C
$
INVESTMENT 400
Break-even CF Y2
TOTAL CF Y1-3 174
Rolling the Model Forward Three Years – Outsource Production / Capital Light
Cleantech Open
Webinar 5 – Financial Analysis & Planning
Year 1 Year 2 Year 3
Revenue 1,000 Revenue 2,500 Revenue 5,000
COGS (500) COGS (1,250) COGS (2,500)
Gross Profit 500 Gross Profit 1,250 Gross Profit 2,500
Gross Profit Margin 50% Gross Profit Margin 50% Gross Profit Margin 50%
Operating Expenses (265) Operating Expenses (450) Operating Expenses (690)
Interest Expense, net - Interest Expense, net - Interest Expense, net -
Pretax Income 235 Pretax Income 800 Pretax Income 1,810
Taxes (94) Taxes (320) Taxes (724)
Net Income before dividend 141 Net Income before dividend 480 Net Income before dividend 1,086
Dividend (25) Dividend (25) Dividend (25)
Net Income 116 Net Income 455 Net Income 1,061
Cash 224 Cash 242 Cash 574
Other Current Assets 333 Other Current Assets 833 Other Current Assets 1,667
TOTAL CURRENT ASSETS 558 TOTAL CURRENT ASSETS 1,075 TOTAL CURRENT ASSETS 2,240
L-t Assets - L-t Assets - L-t Assets -
TOTAL ASSETS 558 TOTAL ASSETS 1,075 TOTAL ASSETS 2,240
Current Liabilities 42 Current Liabilities 104 Current Liabilities 208
Debt - Debt - Debt -
Other Liabilities - Other Liabilities - Other Liabilities -
TOTAL LIABILITIES 42 TOTAL LIABILITIES 104 TOTAL LIABILITIES 208
Paid-in Capital 400 Paid-in Capital 400 Paid-in Capital 400
Retained Earnings 116 Retained Earnings 571 Retained Earnings 1,632
TOTAL LIABILITIES & EQUITY 558 TOTAL LIABILITIES & EQUITY 1,075 TOTAL LIABILITIES & EQUITY 2,240
Operating Cash Flow (176) Operating Cash Flow 17 Operating Cash Flow 332
Capex - Capex - Capex -
Financing Cash Flow - Financing Cash Flow - Financing Cash Flow -
Change in Cash (176) Change in Cash 17 Change in Cash 332
Beginning of Year Cash 400 Beginning of Year Cash 224 Beginning of Year Cash 242
End of Year Cash 224 End of Year Cash 242 End of Year Cash 574
Cash Flow Statement (CF1) Cash Flow Statement (CF2) Cash Flow Statement (CF3)
Income Statement (IS1) Income Statement (IS2) Income Statement (IS3)
Balance Sheet (BS1) Balance Sheet (BS2) Balance Sheet (BS3)

45. Cash 400
Other Current Assets 0
TOTAL CURRENT ASSETS 400
Plant, Property and Equipment 0
IP 0
TOTAL ASSETS 400
Current Liabilities 0
Debt 0
Other Liabilities 0
TOTAL LIABILITIES 0
Paid-in Capital 400
Retained Earnings 0
TOTAL LIABILITIES & EQUITY 400
Balance Sheet (BS0)
businessmodelgeneration.com
CS
CR CH
VP
KA KR
KP
R$
C$
Direct Sales Contract Sales
Fixed Costs
In-house Mfg.
Mfg. Labor
Materials
Variable Costs
Contract Mfg.
QC
Contract Mfg. Partner
Contract Sales /
Distribution Partner
CS
CR CH
VP
KA KR
KP
R$
C$
MODEL 1 – Vertically Integrated (Fixed) MODEL 2 – Flexible
Cleantech Open
Webinar 5 – Financial Analysis & Planning
Cash 950
Other Current Assets 0
TOTAL CURRENT ASSETS 950
Plant, Property and Equipment 350
IP 0
TOTAL ASSETS 1,300
Current Liabilities 0
Debt 200
Other Liabilities 0
TOTAL LIABILITIES 200
Paid-in Capital 1,100
Retained Earnings -
TOTAL LIABILITIES & EQUITY 1,300
Balance Sheet (BS0)

46. Cleantech Open Webinar No 5
by University of Phoenix
Scenario Analysis

47. Cleantech Open
Webinar 5 – Financial Analysis & Planning
• Change model assumptions to test the cash flow requirements of the
business under various conditions
• Start with the most likely case
• Change Assumptions
o Revenue and Revenue growth +/-
o Gross Profit Margins +/- (i.e. COGS -/+)
o Operating Expenses (S&M/G&A/R&D) +/-
o Working Capital assumptions +/-
Scenario Analysis

48. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Scenario Analysis - Assumptions
Year 1 Year 2 Year 3
Revenue
Most Likely 1,000 2,500 5,000
Best 1,500 3,000 6,000
Worst 750 1,500 2,750
Gross Profit Margins
Most Likely 50% 50% 50%
Best 55% 55% 55%
Worst 45% 45% 45%
OpEx as a % of Sales
Most Likely 27% 18% 14%
Best 18% 16% 12%
Worst 35% 25% 9%

49. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Scenario Analysis - Assumptions
Most Likely Best Worst
Receivable Days 60 60 90
Inventory Turns 3.0x 3.5x 2.5x
Payable Days 30 60 30

50. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Scenario Analysis - Results
Year 1 Year 2 Year 3
Net Income
Most Likely
116 455 1,061
Best
441 677 1,508
Worst
(47) 155 566
Cash Flow
Most Likely
(176) 17 332
Best
111 347 847
Worst
(365) (163) 36
• In our Worst the Negative Cash Flow (528) is greater than the cash received from
the equity financing (400).
• As a result, the size of the raise should be increased to at least 600.

51. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Are there any questions?

52. Cleantech Open Webinar No 5
by University of Phoenix
Funding Strategy

53. INDUSTRY FORCES
Competitors
New Entrants
Substitute Products and
Services
Value Chain Actors
KEY TRENDS
Regulatory
Technology
Societal and Cultural
MARKET FORCES
Market Segments
Demands
Switching Costs
Revenue Attractiveness
MACROECONOMIC FORCES
Global Market Conditions
Capital Markets
Commodity Prices
Capital Markets
Cleantech Open
Webinar 5 – Financial Analysis & Planning

54. VC Funds and Angels
are investing more in
companies with:
• Proven technology
• Evidence of Market
Adoption (i.e. Sales)
• Resourceful Management
Teams
• Capital-efficient business
models
Source: European Commission Enterprise and Industry
Cleantech Open
Webinar 5 – Financial Analysis & Planning

55. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Funding Environment – Favors Later Stage
• Early stage companies need to do following:
o Seek alternative funding sources
o Develop business models that have fewer cash needs, and
o Make that funding stretch – manage burn rate
• Equity/Convertible Debt Financing Options include:
o Friends and Family
o Small Business Administration SBIC
o Venture Angels
o Early stage VCs
• Revenue Funding
o Plan a lean business model to reach point of validation as soon as possible
o Seek grant funding (federal and state)
o Non-recurring Engineering Services from industry partners
o Asset sale
o Licensing technology
 Fields of use
 Geography
 Exclusive/non-exclusive

56. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Equity/Convertible Debt Financing Options
Friends and family

57. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Equity/Convertible Debt Financing Options
Small Business Administration (SBA)
Venture capital program (equity financing)

58. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Equity/Convertible Debt Financing Options
Venture Angels
An angel is an individual who
provides capital for a business
start-up, usually in exchange
for convertible debt or
ownership equity.

59. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Equity/Convertible Debt Financing Options
Early Stage Venture Capital Funds

60. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Revenue Funding
Grant Funding
• ARPA-E
• DoE
• NSF
• DoD
• State Agencies like:
o NYSERDA
o NJ EDA
o CT Innovations

61. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Revenue Funding
Partners (suppliers and customers)

62. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Revenue Funding
Asset Sale

63. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Revenue Funding
Get to revenue and manage cash burn rate

64. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Revenue Funding
Licensing

65. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Business models have earnings and cash flow implications
Capital markets today favor later stage of development companies
Early Stage Companies should pursue business model innovation to
o create value
o transform fixed costs into variable costs
o reduce capital intensity, i.e. burn rate
o reduce cash flow required to reach breakeven
Achieving these goals involves an iterative process of
o Filling out the business model canvas
o Creating financial projections and review the cash flow implications
o Conducting Scenario Analysis
o Repeating the process
Summary:

66. Cleantech Open
Webinar 5 – Financial Analysis & Planning
Are there any questions?

67. What will your Plan for Financing and Funding look like?

68. Session 1 Q&A

69. Accelerating Your Business
Live and Breathe the Worksheets

70. 70 Cleantech Open Confidential Information – All Rights Reserved
Worksheet Work – Week 8/6 – 8/12
• Work on your 3-year projection
– Use formulae, not fixed values
– Use customer interviews on which to base your assumptions
– Add milestones you must hit in the next 18 months
– Template available at: http://wiki.cleantechopen.com/accelerator-
wiki/ under “September 10th Deliverables”
• Start thinking of:
– Ways to reduce legal risks in your business
• Your legal structure
• What IP do you own and need to protect
• What is your IP Strategy going forward & how do you intend to
protect it

71. 71 Cleantech Open Confidential Information – All Rights Reserved
As of August 6th ……
Complete Business Model Canvas and Worksheet (Wiki)
Complete Product/Market Fit Worksheet (Wiki)
Complete Markets and Getting to Them Worksheet (Wiki)
Complete Product/Technology Validation Worksheet (Wiki)
Begin (or continue) to develop Financials Worksheet (Wiki)
Contact Your Mentor or Regional Mentor Chair With All Questions

72. Session 2 will start at 2:45pm PDT
3:45pm MDT, 4:45pm CDT, 5:45pm EDT

73. 73 Cleantech Open Confidential Information – All Rights Reserved
Session 2: Halfway Point Q&A
2:45pm – 4:00pm, PDT
Speaker:
Niraj Kohli
President, CSC
Speaker:
Rex Northen,
Executive Director, Cleantech Open
Speaker:
Paul deGive
National
Curriculum Chair,
Cleantech Open

74. 74 Cleantech Open Confidential Information – All Rights Reserved
Worksheet 1: Business Model Canvas

75. 75 Cleantech Open Confidential Information – All Rights Reserved
Worksheet 2: Product/Market Fit (Customer Discovery)
• Characterize your product
• Identify several possible customer sets or segments
• Interview customers in the “most likely” market segment to test
(not sell) your product vision – does your product solve the
solution they are seeking? - Good goal is 50 customer interviews
• After testing and validating:
– State clearly Value Proposition
– Identify the End Users, the Influencers, the Recommenders, the
Economic Buyers, the Decision Makers, the “Saboteurs”
– Identify possible distribution partners
– Who will be the early adopters (“earlyvangelists”)
– What’s the minimum (not maximum) product they require

76. 76 Cleantech Open Confidential Information – All Rights Reserved
Worksheet 3: Market(s) and Getting to Them
• Define, characterize and size your Served Available Market (not
the TAM).
• What niche or segment within that SAM are you targeting as the
first customer segment? How big is that? Why is it first? What
are the trends in its favor?
• How advanced is your customer validation in the first segment?
• What are your second and third segment targets? Size? Trends
for or against?

77. 77 Cleantech Open Confidential Information – All Rights Reserved
Worksheets 4: Technology / Product Validation
• Product validated? Have you completed a Proof of Concept?
• State clearly where in the development cycle the Product is?
– Use DOE MRLs/TRLs to designate the stage of development
– Tell us too whether an initial prototype or full scale prototype has
been successfully developed?
– Field installation?
– Ready for manufacture?
• Third party validation (e.g. National R&D Labs, Certification
Organizations, etc)?
• Manufacture ready? – be sure there are no residual technical
issues to be resolved and that you have credibly costed the
manufacture

78. Reminders

79. 79 Cleantech Open Confidential Information – All Rights Reserved
September 10th Deliverables
Tuesday, September 10, 11:59pm, Pacific Daylight Time
• Deadline for submitting your completed worksheets and required
additional documents
– Eight (8) worksheets in your dashboard, plus
• Business Model Canvas - If you are using LaunchPad Central, export
your Business Model Canvas from the system then convert to pdf
before uploading.
• Financial Projections
– Executive Summary
– Investor Presentation – but you can fine tune until October
Go to “September 10th Deliverables” on Accelerator wiki homepage
for templates & list

80. 80 Cleantech Open Confidential Information – All Rights Reserved
Reminders
• Work on your worksheets – keep up each week, it will make it
easier
• Complete webinar survey Next webinar is Tuesday, August 13th
– Check your Accelerator wiki http://wiki.cleantechopen.com/accelerator-
wiki/2013-webinars/ for updates on webinars
– Session 1: Legal Environment, Issues and Risk - 1:30pm to 2:30pm, PDT
• Speakers: Niraj Kohli, President, CSC
Robert B. Anderson, Partner, Faegre, Baker, Daniels
• Be sure to send in your top 3 expectations you have for the next
worksheet webinar. Link is in the August 13th Session 1 webinar
– Session 2: Cap Tables- 2:45pm-4:00pm, PDT
• Speakers: Deborah Marshall, Partner, Sidley Austin, LLP
Ilan B. Hornstein, Associate, Sidley Austin LLP