Financial workshop for student entrepreneurs Ustart at ULB (Université Libre de Bruxelles) March 19th, 2016

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ATELIER FINANCE
Startups
Martin van Wunnik
19 / 3 / 2016 ULB

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Finance for Startups
• Introduction
• Company Setup
• Accounting
• Financial Plan
• Funding your startup
• Valuation / Dilution
• Q&A

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This presentation is available for free:
http://www.slideshare.net/FinanceCoach24

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Creativity
level
Finance & Accounting
level

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Creativity level
Finance & Accounting
level
Reality check
Funding Value ?
Investments, Costs, Revenues,
Cash
Financial Plan & Elevator pitch
Organization/Company
Team/Partners

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Creativity level
Finance & Accounting
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

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Why Finance for Startups ?
If you don't think about the future,
you cannot have one.
John Golsworthy
where you want to go
how you are supposed to go
You need to know

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CASH

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» Why should I ?
» Capital
» Hats/Personalities
Company Setup

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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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Minimum capital
REAL minimum = Business required !
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

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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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Hats/Personalities
Founders – Shareholders
(Board)
Owners
CEO (gérant/zaakvoerder)
General Manager
Directors
CxO
Employees
Founders:
3 years responsibility

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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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Accounting: Balance Sheet
Non Current Assets
(Actifs Immobilisés/
Vast Activa)
Equity (Capital/Kapitaal)
LT Debts
ST Debts
Current Assets
(Actifs circulants/
Vlottend Activa)
ACTIVE PASSIVE

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Accounting: Profit & Loss (P&L)
Revenues (Sales…)
COGS (Cost of Sales)
General Expenditures
Personnel Costs
Depreciation
Financial cost
Profit
Grossmargin
EBITDA
AddedValue

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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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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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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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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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Financial Plan / Tips for assumptions
• Office: 25 m²/person
• Price of offices: EUR 150/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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Financial Plan / Investments
List all your scheduled investments
YEAR 1
YEAR 2
YEAR 4
YEAR 3
YEAR 5

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Required Cash-Flow

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Subsidies in Brussels
http://ecosubsibru.be/
http://www.impulse.brussels/

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Funding
Some remarks
Principles
Options

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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
Funding, ‘Financing’

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http://www.ideaowl.com/blog/2011/06/microconf-2011-3-surprises-
and-learnings-from-best-conference-ever/

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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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100+7=107 Bank
Principal & Interest
Able to pay back over time
Guarantees

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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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Valuation
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Sweat Money
Exit Money

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Valuation - What is dilution ?

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ATELIER FINANCE
Startups
info@arsimaprojects.eu
02 880 79 55
www.financecoach24.com
Martin van Wunnik