The document provides an overview of finance for startups, covering topics such as company setup, accounting, financial planning, funding options, and valuation. It discusses establishing the proper legal structure for a new company, basic accounting principles, how to develop a financial plan, common sources of startup funding including banks, investors, and crowdfunding, and how company valuation and ownership dilution works. The presentation aims to give entrepreneurs an introduction to important financial considerations for founding and growing a new business.
Finance for startup | Presentation @ 8e Colloque des Clubs Etudiants Entrepreneurs
1. Finance for Startups
Xavier Corman
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2. Finance for Startups
• Introduction
• Company Setup
• Accounting
• Financial Plan
• Funding your startup
• Valuation / Dilution
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3. Who I am ?
Xavier Corman
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4. This presentation is available for free:
http://www.slideshare.net/xaviercorman
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5. Why Finance for Startups ?
If you don't think about the future,
you cannot have one.
John Golsworthy
where you want to go
You need to know
how you are supposed to go
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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 contributions
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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 !
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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)
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10. Hats/Personalities
Founders – Shareholders Founders:
(Board) 3 years responsibility
Owners
CEO (gérant/zaakvoerder)
General Manager
Directors
CxO
Employees
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11. Accounting: notions
• Balance Sheet – Bilan – Balans
• Profit & Loss – Compte de résultat – Winst-en Verliesrekening
• Cash-flow – Trésorerie – Schatkist
• Financial Plan – Plan financier – Financieel Plan
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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 Debts
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13. Accounting: Profit & Loss (P&L)
COGS (Cost of Sales)
Personnel Costs
Gross margin
General Expenditures
Revenues (Sales…)
Added Value
Depreciation
EBITDA
Financial cost
Profit
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14. Financial Plan
Content
– Assumptions
– Profit & Loss
– Balance Sheet / Investment
– Cash-Flow -> Cash needed
– Valuation of the project
– Profitability / return of the project
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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 ?
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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 ?
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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 assumptions
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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…
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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
Profit
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20. Financial Plan / Investments
List all your scheduled investments
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
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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.php
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24. How to finance your start-up ?
Clients
FFF
Suppliers
BA
Banks
VC
Shareholders
Crowd
Equity
LT Debts
ST Debts
Public
Banks
Shareholders
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25. Valuation
• The value of any business is the present value
of the future income stream
• You sell future virtual profits for present real
money
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26. Valuation
Exit Money
Sweat Money
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
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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 Round
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28. Questions & Answers
Free download:
http://www.slideshare.net/xavierCorman
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Accounting: 00:25-00:30 – XavierAs the future CEO, Chairman or simply shareholder of your company, you need some knowledge about accounting. Today, I will show you in 10 minutes the logic behind accounting and I will try to convince you that accounting is the first financial tool to manage your company.
Accounting: 00:30-00:35 - XavierBalance Sheet is a picture of what your company own and how your company financed all its assets.
Accounting: 00:35-00:40 - XavierYou have on your left all the revenues of your company.On the right, all the spending.The Blue is the purpose of your business: PROFIT
Financial Plan : 00:40-00:42 - XavierDon’tstartwithdetails. Go to the important figures.
Financial Plan : 00:43-00:44 - Xavier
Financial Plan : 00:45-00:46 - Xavier
Financial Plan : 00:47-00:48 - Xavier
Financial Plan : 00:49-00:50 – XavierHow many square meter you need per person ?Who knows the price per square meter of offices in Brussels ?
Financial Plan : 00:51-00:52 - Xavier
Financial Plan : 00:53-00:54 - Xavier
Financial Plan : 00:54-00:55 - XavierNext: MARTIN
Funding : 00:55-01:10 - MartinFriends Family and FoolsNext: LEO