This document provides an overview of a presentation on finance for startups. The presentation covers topics such as company setup, accounting, financial planning, funding options, valuation, and dilution. It is delivered by Martin van Wunnik and Xavier Corman and includes slides on accounting principles, financial plan assumptions, funding sources for startups, and calculating business valuations. The presentation concludes with details on upcoming workshops on finance for startups.

1. Finance for Startups
Martin van Wunnik
Xavier Corman
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2. Sponsors
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3. Finance for Startups
• Introduction
• Company Setup
• Accounting
• Financial Plan
• Funding your startup
• Valuation / Dilution
• Workshop’s details
• Q&A
• Pizza
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4. Who we are ?
Martin van Wunnik
Xavier Corman
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5. This presentation is available for free:
http://www.meetup.com/Finance-for-Startups
http://www.slideshare.net/xaviercorman
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6. Creativity
level
Finance & Accounting
level
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7. Creativity level
Reality check
Funding Value ?
Investments, Costs, Revenues,
Cash
Financial Plan & Elevator pitch
Organization/Company
Finance & Accounting
Team/Partners
level
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8. Creativity level
1.000 EUR
21% VAT
(quarterly or monthly refund
request/compensation)
Investments
Cash out: 1.210 EUR
Cash in: 210 EUR (>3m)
Profit impact: 200 EUR over 5y
Cost
Cash out: 1.210 EUR
Cash in: 210 EUR (>3m)
Profit impact: 1.000 EUR
Discounted Cash Flows Finance & Accounting
level
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9. 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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10. CASH
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11. Company Setup
» Why should I ?
» Capital
» Hats/Personalities
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12. Why should I ?
Limit your liabilities !
Professional touch
Fiscal 34% (24% for 3y)
Succession
...
Formalities & some costs
(bank, notary, KBO/CBE, social secretary)
Double entry accounting
Revisor for in-natura contributions
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13. 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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14. 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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15. Hats/Personalities
Founders:
3 years responsibility
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16. 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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17. 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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18. Accounting: Profit & Loss (P&L)
COGS (Cost of Sales)
Personnel Costs
General Expenditures
Revenues (Sales…)
Depreciation
Financial cost
Profit
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19. 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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20. 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 worst something.
• How to make a very quick financial plan ?
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21. 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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22. 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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23. 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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24. 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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25. Financial Plan / Investments
List all your scheduled investments
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
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26. Required Cash-Flow
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27. Funding
Some remarks
Principles
Options
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28. 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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29. http://www.ideaowl.com/blog/2011/06/microconf-2011-3-surprises-
and-learnings-from-best-conference-ever/
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30. Interest – Returns
100 102 Bank
100 0..1000 Stock market
100 100 F.F.F.
100 107 Bank
100 130 BA / VC
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31. 100+7=107 Bank
Principal & Interest
Able to pay back over time
Guarantees
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32. How to finance your start-up ?
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34. 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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35. Valuation
Exit Money
s
ue
iq
hn
Tec
up
h-
tc
Ca
Sweat Money
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
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36. Valuation - What is dilution ?
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37. Next Workshops
Venues still to be defined (Brussels)
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38. There is no free-lunch*
Each workshop = 90 EUR vat incl.
WeStartup members: 50 EUR (VAT incl.)
MAX 10
pers/workshop
2 hours + Slides + Foods & Drinks
* Milton Friedman
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39. Questions & Answers
Free download:
http://www.slideshare.net/xavierCorman
http://www.meetup.com/Finance-for-Startups/messages/boards/
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