The document discusses various options for financing a startup at different stages, including bootstrapping, friends and family financing, angel investing, venture capital, bank loans, incubators/accelerators, grants, and crowdfunding. It provides details on who provides the money, advantages, disadvantages, and where to find each type of financing. Key points covered include understanding the startup timeline in relation to financing needs, having the right materials prepared like a business plan and prototype before seeking investment, and avoiding giving away too much equity or raising too much money too early in the process.

1. Startup Financing: How to get from A
to B with 0 or 100?
Coworking Week
Tirana, October 2018
Lubomila Jordanova

2. About me
Lubomila
Jordanova
CEO &
Founder
Educational Background
Professional Background
Vienna,
Austria
London,
UK
Bangkok,
Thailand
London,
UK
London,
UK
Barcelona,
Spain

3. About the workshop
+ What I am going to share?
• What is a typical startup timeline?
• What financing options exist for
startups?
• How can you access them?
• What are the Must NOTs of
financing your company?
- What should be the outcomes?
• Understand the different finance
channels and vehicles
• Recognise which channel / vehicle is
appropriate for your company
• Leave with a toolkit to start the process
of seeking financing

4. About you
Let’s get to know each other.
• Name?
• Have a startup or want to have one in the future?
• What does / will this startup do?
• Who is your customer? Who pays for the product?
• At what stage of the development are you?
• Do you have a prototype or just an idea?

5. The Timeline of a Startup
Ideation Concepting Commitment Validation Scaling Establishing
-2 -1 0 1 2 3
Vision & Mission
MVP
Product
Market Fit
Growth
Time
Potential scalable
product/service idea
for big enough target
market. Some initial
revenue model for how
it would make money.
One person or only
vague team: no
confirmed
commitments and/or
no right skills balance in
the team structure yet
Having clear and
meaningful target with
clear direction for min.
3 years with milestones
set to get there
(3,6,12,24,36 months).
Having team of 2 or 3
core founding
members. Can also
have already extended
team.
Committed and skills
balanced founding
team. Able to develop
product / service (MVP
= minimum viable
product) without
dependency on
external resources.
Shareholders
agreements between
founders signed with
milestones..
Can already show
some user growth and
revenue. Attracting
additional resources
(money or sweat equity.
Looking for market
validation (Product
Market Fit) to be able to
scale.
Showing clear growing
and measurable user /
market traction in big or
rapidly growing target
market. Can and want
to scale faster. Is able
to attract significant
funding.
Achieved great
growth, that can be
expected to continue in
a stable manner. No
longer need to “try” to
get resources, but has
the ability to access
them easily. Founders
make exit or continue
as usual.

6. Types of Financing
Depending on the stage and type of your business, various financing channels and vehicles could
be suitable.
Bootstrapping
The
3 Fs
Incubators /
Accelerators
Venture
Capital
Bank Loan
Angel
Financing
Institutional
Grants
Crowdfunding

7. Type #1. Bootstrapping
* What is it?
Bootstrapping is when an entrepreneur starts a company with little capital.
An individual is said to be bootstrapping when he or she attempts to found
and build a company from personal finances or from the operating revenues
of the new company.
$ Who gives the money?
You.
+ What are the advantages?
• Greater Focus: Bootstrapping can also take out
another pressure point of many startups which is
having to impress investors to raise funding.
• Easier Pivoting: There is no pressure to keep the idea
the same, as no externals can influence it.
• No dilution of ownership
- What are the disadvantages?
• Time: When bootstrapping a company, time is usually a large
obstacle that you have to overcome
• Lack of Investor support: More times than not, investors
provide more than just money.
• Personal risk: When bootstrapping you stand to gain a lot more
if your company is a success, but to lose a lot if unsuccessful.
^ Where do you find this?
In your bank
account
Nowhere

8. Type #2. The 3 Fs
* What is it?
The three Fs are friends, family and fools. Less than 1% of start-ups raise
venture capital so the 3Fs are important. Relying on family and friends who
are willing to invest in you is a great way to get started. This is why
entrepreneurs spend a lot of time cultivating their social network.
$ Who gives the money?
Friends, Family,
Fools.
+ What are the advantages?
• Favourable terms
• Once someone has put their money in your company,
they are likely to support you further with their network,
expertise and knowledge
- What are the disadvantages?
• If your idea is bad, someone is going to be burning money for
nothing. !
^ Where do you find this?
Your
Linkedin
Social
Networks

9. Type #3. Angel Investing
* What is it?
Angel investor is a person who invests in a new or small business venture,
providing capital for start-up or expansion. Angel investors are typically
individuals who have spare cash available and are looking for a higher rate of
return than would be given by more traditional investments.
$ Who gives the money?
High Net Worth
Individuals (Angels).
+ What are the advantages?
• Angel investors are willing to take risks and invest if they see
a vision and motivated team
• They invest early on which often leads to having a hands on
approach (aka helping you with network and ideas)
• They have friends and often invest with them
- What are the disadvantages?
• You lose some control over your business: Most angels want
an active role in the decision-making process.
• Angels come in expecting a way to exit.
• Don’t expect to receive follow-up investments. Angel
investors are typically going to make one investment only.
• A high tolerance for risk has its price. A lot of equity in stake.
^ Where do you find this?
Do online research by
industry or location

10. Type #4. Venture Capital
* What is it?
Venture capital (VC) is a type of private equity, a form of financing that is
provided by firms or funds to small, early-stage, emerging firms that are
deemed to have high growth potential, or which have demonstrated high
growth (in terms of number of employees, annual revenue, or both).
$ Who gives the money?
Venture Capital
Firms.
+ What are the advantages?
• Credibility and integrity
• Connections & networking in the business
community
• Corporate expertise
• Accelerated growth
- What are the disadvantages?
• Time-consuming process: could last up to 6 months
• Lack of right growth structures and strategies
• Profit share
• Micromanagement
• Equity loss
^ Where do you find this?
Do online research by
industry or location

11. Type #5. Bank Loan
* What is it?
Banks are the largest business lenders and probably the first place you think
about when getting a small business loan. Bank loans some of the lowest cost
loans available, but it can be difficult to qualify. About 72% of small business
owners who apply get rejected. of oceans, seas and aquatic resources
$ Who gives the money?
Banks.
+ What are the advantages?
• Very low, fixed interest rates
• Predictable monthly payments
• Helps build business credit
• Professional banker relationship
• Available for many uses
- What are the disadvantages?
• Lengthy paperwork
• Longer wait time
• Requires strong credit
• Usually requires collateral
^ Where do you find this?
In a bank where
you are from
In a bank where your
business is registered

12. Type #6. Incubators / Accelerators
* What is it?
Accelerators "accelerate" growth of an existing company, while incubators
"incubate" disruptive ideas with the hope of building out a business model and
company. So, accelerators focus on scaling a business while incubators are
often more focused on innovation.
$ Who gives the money?
Corporates, seed
funds, gov bodies, etc.
+ What are the advantages?
• Mentorship: Any good incubator will be laden with
investors, VCs and mentors who have a record of making
businesses and ideas of all sizes work.
• Collaboration: having access to a shared space filled with
like-minded, energy-fuelled individuals can be invaluable
• Network
- What are the disadvantages?
• Equity: Given the early stage you would usually enter such
programmes, often you have to give up up to 10% of your
company
• Location: You will be required to be in the same location for 3-6
months
• Alignment to accelerator’s / incubator’s needs
^ Where do you find this?
Everywhere. There is two categories to search for (online):
1) Industry focus – look for an incubator / accelerator for a particular industry (e.g. Fintech incubator)
2) University – usually big European universities have such programmes (e.g. HEC)
3) Corporates – corporates often have such initiatives to find innovation for their topic (e.g. GE)

13. Type #7. Grants
* What is it?
A small business grant is money given by private business or corporation,
federal, provincial, or local government, for a specified purpose or project to
a small business. It does not have to be paid back unless the small business
breaks the conditions laid out in the agreement.
$ Who gives the money?
Governments, EU,
Institutions.
+ What are the advantages?
• Equity Free: You don’t have to give up equity to
shareholders
• Validation: You get the validation that a large organization
has looked over your project and has decided your
achievements and ideas are sound enough to warrant
funding.
- What are the disadvantages?
• Amount of Money: you are expected to give money yourself
• Flexibility: You have less flexibility since you have to adhere to
your original plans, unless agreed upon otherwise.
• Time: Researching which grants you are eligible for will take a
good chunk of time, or you will have to pay a consultant to do the
legwork for you.
^ Where do you find this?
Your
Government
European
Union
USA Grant
Programmes

14. Type #8. Crowdfunding
* What is it?
Crowdfunding is the process of raising capital for a business or a business
idea, by using the internet and various social media platforms, to reach out to
a large group of people.
$ Who gives the money?
The people.
+ What are the advantages?
• Access to "cheap money.” You're raising money for your
project or business without selling off an equity stake.
• Pre-funding your next product. This type of crowdfunding is
a great way to lay the groundwork for your next innovative
project.
• Building community. Amazing visibility if you do your job well.
- What are the disadvantages?
• A lot of preparation in advance: A successful campaign is one
which engages the audience. This requires preparation, research
and marketing skills.
• The pressure is on. Once you've successfully raised money,
you've got to ship whatever you're producing / show results and
what the money have been used for.
^ Where do you find this?

15. Bootstrapping
Timeline of Financing your Startup
Ideation Concepting Commitment Validation Scaling Establishing
-2 -1 0 1 2 3
Vision & Mission
MVP
Product
Market Fit
Growth
Time
Types of
Finance
Venture CapitalAngel Financing
Incubators / Accelerators
Bank Loan
Institutional Grants
The 3 Fs
Crowdfunding

16. The Checklist
What do I need to prepare before I ask for finance?
" Business idea - what are you selling to who and why do they want to buy it
" One liner about the company - one sentence about your company / idea
" Pitch deck – presentation about the company / idea
" Financial model – calculations about when you are going to breakeven
" Business Plan - detailed explanation about the financial, operational and
other aspects of the company
" Prototype – a (broken) website / first version of your software / physical
protype
" Team - co-founders, co-workers, employees

17. Must NOTs
• Give away too much equity too early.
• Raise too much money.
• Raise from the wrong people - you need strategic partners at any
stage, who will open doors, not simply give money.
• Start looking for money immediately after you get an idea.
• Give away too much information too early – raising funds is a
negotiation game.
• Look for money only to make more money. You need vision,
passion and dedication.

18. Checkpoint.
+ What I am going to share?
• What is a typical startup timeline?
• What financing options exist for
startups?
• How can you access them?
• What are the Must NOTs of
financing your company?
• At what point of your startup
development should you seek what
investment?
- What should be the outcomes?
• Understand the different finance
channels and vehicles
• Recognise which channel / vehicle is
appropriate for your company
• Leave with a toolkit to start the process
of seeking financing

19. Now let’s get to work.