1.
Seemant Shrivastav

2.
Agenda
• Bootstrapping – How to bootstrap your start-up
• Sources of Finance- Various sources of finances
• Managing your Company’s finances
• How to survive tough times
• Fundraising Trends
• Conclusion- Q&A

3.
How to Bootstrap?

4.
How to Bootstrap?
• Stick to a business domain you know and love.
• Start from own Home/Friends or relatives Home
• Try & manage as much work as possible amongst
founding team
• Find cost effective resources/interns
• Look for freebies , deals , free trials etc
• Plan and track your finances, avoid unnecessary
expenses
• Don’t waste time & money at conferences, seminars
unless your product is ready

5.
How to Bootstrap? (2)
• Find team members to work for equity rather than cash.
• Build a plan around your budget, rather than around your
wishes.
• Defer your urge to find office space until you have customers.
• Ask for advance on royalties and vendor deferred payments.
• Choose a business model to optimize your revenue flow and
timing
• Moonlighting; and keep quiet about side project

6.
Sources of
Finance

7.
Start-up: Typical Financing Cycle

8.
Equity Debt Barter(exchange) Others
VentureFunds CreditCards
PartneratVC's,CorporateHeads PersonalLoans SaasinsteadofProduct
AngelFunds&Networks VentureDebt(PEfundedCo) GetSeniorpeopletowork
AngelSyndicatePlatforms SMELoansbyNBFC's CustomerAdvances
MediaBarters Factoring Licenseyourproductsin mkt
HNI's Leasing GovernmentGrants&Incentives
Incubator/Accelerator LoanagainstCollaterals Barter-ConsignmentBiz WinPrizesincontests
CrowdFunding CGTMSE Backofficesupport Managingwithownrevenues
Friends&Family OfficeSpacevsproduct/equity Moonlightingonjob
Bootstrapping Exchangeresources GetFreeresources
Costoffund
Sources of Finance
Higher
Lower

9.
Debt Financing: Lessor known Sources
• Banking Surrogacy
• CGTSME Loans
• MUDRA Loans
• Factoring
• Venture Debt

10.
Managing
Finances

11.
Basic Financial Terms
• Profit & Loss A/c
• Balance Sheet
• Cash Flow Statement
• Business Plan
• Budgeting
• Accounts Payable
• Accounts Receivable
• Direct Costs
• Indirect Costs
• Operating Margins
• Net profit
• Cash Burn Rate
• Debt Equity Ratio
• Current Ratio
• Debt Service Coverage
• Interest Coverage
• IRR/ROCE

12.
Golden Financial Management Rules
• Never Invest your money without ensuring that assets
you acquire can generate a return which is at least
equal to the cost of your capital
• Invest your money in such a way that the assets will
generate an inflow of funds before liabilities demand
an outflow
(*source: Romancing The Balance Sheet by Anil Lamba)

13.
Surviving
Tough
Times

14.
Go Back to Basics
• Generate Profit & not Sales
• Cut unnecessary expenses
• Pay minute attention to cash flows
• Manage Working Capital efficiently
• Don’t use short term funds for long term purposes
• Be wary of unsecured & high cost debts

15.
Further Survival
• Negotiate credit terms with Vendors and Customers
• Look for Hidden sources of cash (especially for slightly
mature business) in your books
• Sell off unwanted assets to generate cash
• Explore advances from Customers
• Lay off people (if unavoidable) on best possible terms

16.
Fund Raising Trends

17.
Hottest Sectors (Q1 FY 17)
• Fintech ($18.5 mn )
• Food Tech ($11.5 Mn)
• Real Estate Tech ($10 Mn)
• Health tech ($8.43 Mn)

18.
Fund raise Questions
• How much funding should I raise?
• When should I raise money? At what stage should I
not?
• How much equity should I give? At what terms?
• How should I value my company?
• How should I give equity when I am unable to value
my company?

19.
Fund raise Questions (2)
• How should I reach out to investors?
• How many investors would I have to reach to find
one?
• How long will this process take ?
• Should I appoint anyone for the process ?
• How much will the fund raising process cost
• What is the right structure/instrument

20.
To Conclude
• Define your round – amount, tranche, dilution
• Structure a process – Project Plan and CRM
• Seeking advice – entrepreneurs, investors, mentors,
industry guys – ask for advice, you get money; ask
money, get advice
• Selecting a VC – Terms, Follow On, Strategic Support,
Brand Name, Time to money, Integrity/Competition,
Dilution
• Finding a good CA/lawyer

21.
Seemant@attentiocs.com
+91-9820597897
Thanks