This document provides information about a startup finance training session. It includes an agenda for two sessions that will cover key financial concepts, business planning, pricing models, business modeling, and other tools. The sessions will help non-business founders understand important financial indicators and enable them to set up models and criteria for startup valuation and investor presentations. Examples of what to include on a single-page financial overview for investors and potential investors are also presented, focusing on key relevant information. Methods for determining business drivers and pricing are discussed.

1. Tetuan alley
Startup School Fall 2011
This is the Land of Do-as-you-please-and-
take-what-you-want
Week
2
#tvssv
Tetuan Valley, October 2011

2. #tvssv
Sponsors Collaborators

3. STARTUP
FINANCE
101
OBJETIVE
SESSION
1
• Key
concepts
Startup
Finance
101
for
non
biz
profile
• Principles
founders
• RaBos
and
formulas
• Investors;
ObjeBves
and
constricBons,
investment
stages,
Venture
OUTCOMES
Capital
and
criBc
value
enhancers
• Conclussions
•
Understanding
of
key
financial
indicators
•
Enabling
entrepreneusr
to
set
up
models
and
criteria
for
startup
valuaBon
SESSION
2
and
investor
financial
presentaBon
• Business
planning
• Pricing
SCHEDULE
• Business
modeling
• Misc.
tools
2
x
4h
sessions
28/11/11

4. STARTUP
FINANCE
101
–
Session
2
1. The
Business
Plan
2. The
Price
3. The
Business
Model
4. Other
Tools
28/11/11

5. My
@me
is
valuable…
how
much
m
will
I
spend
looking
at
your
BP
28/11/11

6. 28/11/11

7. What
investors
are
looking
for
…and
so
should
YOU
28/11/11

8. Your
Company
Your
Investor
Your
Numbers
28/11/11

9. WHAT
WE
INCLUDE
IN
A
FINANCIAL
1
PAGER:
COMPANY
l Opportunity
descrip@on
WHO
ARE
YOU
l Business
Model
l Need
Sa@sfied
l Products
/
Services
WHAT
DO
YOU
DO
l Market
Objec@ve
l Compe@tors
HOW
DO
YOU
l Sales
&
Marke@ng
Strategy
ACHIVE
IT
l Current
and
Funnel
Clients
OPPORTUNITY
FOR
l Investment
Alloca@on
THE
INVESTOR
l Exit
Strategy
28/11/11

10. WHAT
WE
INCLUDE
IN
A
FINANCIAL
1
PAGER:
INVESTOR
l Business
Sector
(Tags)
l Contact
Informa@on
l Execu@ve
Team
l Financial
Informa@on
RELEVANT
― Investment
Stage
― Current
Capital
INFORMATION
― Monthly
Burn
Rate
FOR
THE
― Pre-­‐Money
Valua@on
INVESTOR
― Investment
Capital
l Current
Investors
l Forums
28/11/11

11. WHAT
WE
INCLUDE
IN
A
FINANCIAL
1
PAGER:
NUMBERS
Mul@plier
Año1
…
Año
n
Revenues
CF
Breakeven
EBITDA
Net
Result
Assets
LiabiliBes
Cash
Money…
when
and
how
much
28/11/11

12. STARTUP
FINANCE
101
–
Session
2
1. The
Business
Plan
2. The
Price
3. The
Business
Model
4. Other
Tools
28/11/11

13. PRICING
METHODS
-­‐
BENCHMARK
Useful
for
similar
products
Difficult
to
obtain
data
Be
careful
l What
you
compare
l Units
l Time
l Loca@on
Tabulate
data
and
present
in
graphs
or
simple
tables
28/11/11

14. PRICING
METHODS
-­‐
MARKUP
Useful
for
established
products
in
compe@@ve
atmosphere
Always
lower
limit
Easy
to
obtain
data…
your
company
Be
careful
l Over
price
l Cost
Alloca@on
l Unitary
marginal,
variable
and
fixed
cost
28/11/11

15. PRICING
METHODS
–
VALUE
ADDED
Useful
for
breakthrough
technologies
Clearly
explain
the
gains
the
client
will
have
Difficult
to
obtain
data
Always
upper
limit
Be
careful
l What
are
the
needs
of
the
client
l Determine
the
value
per
use
28/11/11

16. STARTUP
FINANCE
101
–
Session
2
1. The
Business
Plan
2. The
Price
3. The
Business
Model
4. Other
Tools
28/11/11

17. What
makes
your
business
@ck
Up
and
Down…
almost
ALWAYS
is
related
28/11/11

18. How
to
determine
your
business
drivers
Target:
Commercials
in
FMCG
companies
How
5.000
users
first
year
,
recurrent
and
growing
How
Go
to
5
of
the
100
companies
in
the
market
How
1
Market
Average
is
1000
users/
client
Do
you
s'll
have
5.000
Users?
I
personally
(or
my
network)
know
5
decision
takers
in
2
How
those
companies,
iniBal
prospecBon
has
been
made
Do
you
s'll
have
5.000
Users?
3
Do
de
companies
have
control
over
the
users?
How
Do
you
s'll
have
5.000
Users?
4
Are
my
clients
going
to
demand
a
trial
phase
Do
you
s'll
have
5.000
Users?
5
Success
in
conversion
rate
from
trial
to
client?
Do
you
s'll
have
5.000
Users?
28/11/11

19. Usefulness
Target:
Commercials
in
FMCG
companies
5.000
users
first
year
,
recurrent
and
growing
Go
to
5
of
the
100
companies
in
the
market
MarkeBng
/
Sales
Strategy
1
Market
Average
is
1000
users/
client
Do
you
s'll
have
5.000
Users?
I
personally
(or
my
network)
know
5
decision
takers
in
Scalability
2
those
companies,
iniBal
prospecBon
has
been
made
Do
you
s'll
have
5.000
Users?
3
Do
de
companies
have
control
over
the
users?
Success
of
Do
you
s'll
have
5.000
Users?
product
/
service
4
Are
my
clients
going
to
demand
a
trial
phase
Do
you
s'll
have
5.000
Users?
5
Success
in
conversion
rate
from
trial
to
client?
Do
you
s'll
have
5.000
Users?
28/11/11

20. Revenue
Streams
Asset
Sale
Usage
Fee
Subscrip@on
Fee
Lending
/
Ren@ng
/
Leasing
Licensing
Brokerage
/
Commissioning
Adver@sing
28/11/11

21. Don’t
be
afraid…
Your
own
matrix
…
We
will
help
you
with
an
standard
28/11/11

22. 28/11/11

23. STARTUP
FINANCE
101
–
Session
2
1. The
Business
Plan
2. The
Price
3. The
Business
Model
4. Other
Tools
28/11/11

24. 28/11/11