tap entrepreneurship seminar 16092016

ENTREPRENEURSHIPSEMINAR

How to Fund Your Business

Karan ShanmugarajahVic Arulchandran

Tamil Association of Professionals

BUDGETING

• Setting Milestones

• How Much to Raise

• Managing Your Cash Burn

FINANCIAL FORECAST

• Your forecast will be wrong, but that’s not the point

• Costs• Staff, marketing, development, legal, regs, accounting, office space etc.

• Revenue model• Scenarios

VALUATION

• Discounted Cash Flow (DCF)• Market Comparables• More Realistically:

• Your Industry and Sector • Demand and Supply of Money• Size and Recent occurrence of exits• Investor “fear of missing out” – FOMO• Desperation of entrepreneur• How much you need for next milestone (20%-30% rule)

INVESTOR TYPES

• Bootstrap • Friends, Family and Fools (FFF)• Loans (Banks, online lenders, etc.)• Angels• Venture Capital• Corporates• Public Markets• Crowdfunding

INVESTMENT ROUNDS

• Pre-Seed• Seed• Large/Mango Seed• Series A• Series B,C,D• IPO

UK INVESTMENT SCHEMES

• SEIS – Seed Enterprise Investment Scheme• EIS – Enterprise Investment Scheme• HMRC Advanced Assurance• Government grants – Horizon 2020

MUST READS

• Fundraising Field Guide

• Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist

LEVERAGING INCUBATORS & ACCELERATORS TO GET FUNDED

Tamil Association of Professionals

INCUBATORS & ACCELERATORS 1/2

• Incubators• Wayra - Tech• Abbey Road Red - MusicTech

• Accelerators• Microsoft Accelerator - Tech• Accenture FinTech Lab - FinTech• Barclays Techstars - FinTech• Collider - MadTech• Mass Challenge UK - Tech• L39 - FinTech• Bethnal Green Ventures - Tech

INCUBATORS & ACCELERATORS 2/2

• Non-equity

• Equity

• Prize money

• Demo day

MENTORS & INVESTORS

• Incubators and Accelerators are great places to meet mentors and investors

• Mentors• The best mentors will be the ones that have been in your shoes• They will be able to help you with your business plan, strategy, and

network opportunities• Mentors sometimes become investors...

• Investors• Find investors who have experience investing in your industry• Look for the ones that can add value to your business

PITCHING FOR INVESTMENT

• Your pitch should be short and sweet• Problem• Solution• Opportunity• How it works• Team• Traction

• Keep a detailed deck for follow ups• Remember when pitching; sometimes less is more

RECOMMENDED READING AND LINKS

• Books• The Innovators Dilemma - Clayton Christensen• Thinking Fast and Slow - Daniel Kahneman• Mastery - Robert Greene• The Hard Things About Hard Things - Ben Horowitz

• Links• http://www.virginstartup.org/how-to/how-create-realistic-financial-proj

ections-your-first-year-business• https://attach.io/startup-pitch-decks/?ref=producthunt

Feedback: campus.co/cheers

PANELKoby YogaretnamIdeal Incubator

Arnie SriskandarajahCapco

Carlos Eduardo EspinalSeedcamp

Tamil Association of Professionals