are you ready for growth capital

Are You Ready for Growth Capital

67th National Startup Summit at FRO2013

Bangalore

7th September 2013

Anjana Vivek

[email protected]

VentureBean Consulting Private Limited

What is Growth May include some or all of these and more..

• Sales

– Quantity – Quality: Product/Service lines; customer profiles; export/import

mix etc..

• Profits / EBIDTA

• Cash inflow from operations

• Capacity

– Increase of capacity – Increase in efficiency, i.e. capacity utilization

• Number of offices/employees etc

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Other Growth Parameters

• Value creation

• Increased Brand visibility • Faster Growth trajectory

• .. Etc…

Exercise: • Pick a business you know • How will you define growth in this business

– in the long term, medium term and short term

3


Funding

• Equity – Angel/3 Fs/ VC/Private Equity

• Debt/Loans

• Grants

• Franchising

• Alternate Business Model Plan

• Combination/Internal Generation

4


Funding

• In Phases

• Utilization

• Plan A vs. Plan B vs. Plan C

• Changing Business Model – Impact on Funding Quantity

– Impact on Funding Method

• What is your Funding Plan and Strategy

5


Planning

• Setting your Vision

• Preparing a Plan

• Reviewing Possible risks vs. rewards

• Legal and statutory issues

• Business model and structuring

• People related matters

• Other non-business issues

• Implementation/operational plan

• Then Funding Strategy and Plan

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Case 1

• Your service company in India wants to raise funding

• Your markets: Immediate India, long term global

• You have been in business for 10 years and are profitable

• You can go for debt or equity or combination of this for the next stage of growth

• What else should you keep in mind when you are seeking growth capital

Q. Please think about how you would plan for this and go ahead and raise funding

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Case 2

• Manufacturing company is getting increased business

• This increases the working capital requirement putting a stress on the cash flow management

• Should the company look at growth capital

• The business is also currently in the form of a partnership and promoters are thinking of corporatizing this and then look at equity funding

• Would they be better off looking at Debt funding or combination funding

• What should be the funding strategy

Q. You are the promoter of the business, what are the 3-5 key points for planning and raising funding

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In summary • Clearly articulate a Growth Plan

• Think about the Funding Strategy

• Plan for fund raising and time lines

• Have a realistic plan, an optimistic one and a

back up plan

• It is Not All About Funding, All companies that

get funded do not succeed and all companies

that do not get funded do not fail, so do not

Plan only along one Dimension for Funding

without thinking through the complete picture

GOOD LUCK in your Business…

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In summary THINK BEYOND CAPITAL

• It is Not All About Funding, All companies that

get funded do not succeed and all companies

that do not get funded do not fail, so do not

Plan only along one Dimension for Funding

without thinking through the complete picture

GOOD LUCK in your Business…

Additional class notes and resources on valuation, business

planning and more at

• http://www.linkedin.com/company/venturebean-consulting-

private-limited

• www.slideshare.net/anjanavivek

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http://www.linkedin.com/company/venturebean-consulting-private-limited







http://www.slideshare.net/anjanavivek


Thank You!

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are you ready for growth capital

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