The top 5 reasons why an investor will NOT invest in your startup

Xavier Corman | Martin van Wunnik 1 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 1 19/09/2012

Finance workshop

The top 5 reasons why an investor will NOT

invest in your startup

Martin van Wunnik

Xavier Corman

Vladimir Blagojević

Xavier Corman | Martin van Wunnik 2 19/09/2012 2 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević

Who are we ?

Martin van Wunnik

Xavier Corman

Vladimir Blagojević

Xavier Corman | Martin van Wunnik 3 19/09/2012 3 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević

This presentation is available for free:

http://www.slideshare.net/xaviercorman

http://www.slideshare.net/FinanceCoach24

http://www.slideshare.net/VladimirBlagojevic

Xavier Corman | Martin van Wunnik 4 19/09/2012 4 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević

http://www.ideaowl.com/blog/2011/06/microconf-2011-3-surprises-

and-learnings-from-best-conference-ever/

Xavier Corman | Martin van Wunnik 5 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 5 19/09/2012

Investor’s motivations

1. Team

2. Business model

3. Scalability

4. ROI

5. Exit strategy

Xavier Corman | Martin van Wunnik 6 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 6 19/09/2012

Team

Xavier Corman | Martin van Wunnik 7 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 7 19/09/2012

Business model

Xavier Corman | Martin van Wunnik 8 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 8 19/09/2012

Business model

“How will you make money ?”

Tech startup: Your product is only 1/3 !

Freemium (« build a community »)

Burn rate, cash crunch, « valley of death »

Xavier Corman | Martin van Wunnik 9 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 9 19/09/2012

Required Cash-Flow

Xavier Corman | Martin van Wunnik 10 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 10 19/09/2012

@VladBlagi

10steps2.com

A Scalable Business Checklist

Get your innovations funded

Xavier Corman | Martin van Wunnik 11 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 11 19/09/201210steps2.com

WHAT ARE YOU

BUILDING?

Xavier Corman | Martin van Wunnik 12 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 12 19/09/2012

Xavier Corman | Martin van Wunnik 13 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 13 19/09/2012

WHAT IS YOUR INVESTOR

THINKING ABOUT?

Xavier Corman | Martin van Wunnik 14 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 14 19/09/2012

YOU ARE BUILDING A MONEY

MAKING MACHINE

Xavier Corman | Martin van Wunnik 15 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 15 19/09/2012

How will you make money?

Who is buying?

How will you reach

customers?

Why are you worth buying? Why are you

different?

2. custom

er

3. unique

value proposition

1. revenue

4. chann

els

Xavier Corman | Martin van Wunnik 16 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 16 19/09/2012

AND IT’S GOT TO BE SCALABLE

Xavier Corman | Martin van Wunnik 17 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 17 19/09/2012

Easy to sell

Easy to deliver

Repeatable business

Scalable growth engine

Big, growing market of buyers

Unfair advantage

Xavier Corman | Martin van Wunnik 18 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 18 19/09/2012

10 STEPS TO A SCALABLE BUSINESS

A free course at 10steps2.com

10steps2.com

Xavier Corman | Martin van Wunnik 19 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 19 19/09/2012

Bank loan

100 + 12 = 112

Principal & Interest

� Able to pay back over time

� Guarantees

ROI = Return on Investment

Xavier Corman | Martin van Wunnik 20 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 20 19/09/2012

100

506

122

Xavier Corman | Martin van Wunnik 21 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 21 19/09/2012

Xavier Corman | Martin van Wunnik 22 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 22 19/09/2012

www.impulse.de

weighted average cost of capital (WACC)

Cost of Equity (Re) = Rf + Beta (Rm-Rf).

After-tax cost of debt

Xavier Corman | Martin van Wunnik 23 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 23 19/09/2012

Exit Strategy

A business angel is a wealthy individual who invests in a startup

company with his or her own money with the aim of achieving a

financial return through capital gain at exit.

No STRATEGY to the next step => NO INVESTOR !

Xavier Corman | Martin van Wunnik 24 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 24 19/09/2012

How to finance your start-up ?

Xavier Corman | Martin van Wunnik 25 19/09/2012 Xavier Corman | Martin van Wunnik | Vladimir Blagojević 25 19/09/2012

Q&A