19.3.16 Finance workshop @ustart

Martin van Wunnik 119 / 3 / 2016 | Martin van Wunnik 119 / 3 / 2016

ATELIER FINANCE

Startups

Martin van Wunnik

19 / 3 / 2016 ULB


Finance for Startups

• Introduction

• Company Setup

• Accounting

• Financial Plan

• Funding your startup

• Valuation / Dilution

• Q&A


This presentation is available for free:

http://www.slideshare.net/FinanceCoach24


Creativity

level

Finance & Accounting

level

Martin van Wunnik 519 / 3 / 2016 | Martin van Wunnik 519 / 3 / 2016 5

Creativity level


level

Reality check

Funding � Value ?

Investments, Costs, Revenues,

Cash

Financial Plan & Elevator pitch

Organization/Company

Team/Partners


Creativity level


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


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


CASH


» Why should I ?

» Capital

» Hats/Personalities

Company Setup


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


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


Shareholders � Control (>51%)

Absolute / Relative majority

40% - 60%40% - 10% - 10% -10% -10% -10% -10%

Voting RightsClass A & B

Minority (blocking) interest

Investors per phase (dilution)!

Stock options:

fiscal implications, buyer requiredvesting conditions : targets, period (4y)


Hats/PersonalitiesFounders – Shareholders

(Board)

Owners

CEO (gérant/zaakvoerder)

General Manager

Directors

CxO

Employees

Founders:

3 years responsibility


Accounting: notions

• Balance Sheet – Bilan – Balans

• Profit & Loss – Compte de résultat – Winst-en Verliesrekening

• Cash-flow – Trésorerie – Schatkist

• Financial Plan – Plan financier – Financieel Plan


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


Accounting: Profit & Loss (P&L)

Revenues (Sales…)

COGS (Cost of Sales)

General Expenditures

Personnel Costs

Depreciation

Financial cost

Profit

Gro

ss m

arg

in

EB

ITD

A

Ad

de

d V

alu

e


Financial Plan

Content

– Assumptions

– Profit & Loss

– Balance Sheet / Investment

– Cash-Flow -> Cash needed

– Valuation of the project

– Profitability / return of the project


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 ?


Financial Plan in 10 min /questions

What are your revenues ?

What are your costs ?

What are your investments ?

How many persons for your project ?


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


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…


Financial Plan / Investments

List all your scheduled investments

YEAR 1

YEAR 2

YEAR 4

YEAR 3

YEAR 5


Required Cash-Flow


Subsidies in Brussels

http://ecosubsibru.be/

http://www.impulse.brussels/


Funding

Some remarks

Principles

Options


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’


http://www.ideaowl.com/blog/2011/06/microconf-2011-3-surprises-

and-learnings-from-best-conference-ever/


Interest – Returns

100 � 102 Bank

100 � 0..1000 Stock market

100 � 100 F.F.F.

100 � 107 Bank

100 � 130 BA / VC


100+7=107 Bank

Principal & Interest

� Able to pay back over time

� Guarantees


Valuation

• The value of any business is the present value

of the future income stream

• You sell future virtual profits for present real

money


Valuation

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Sweat Money

Exit Money


Valuation - What is dilution ?


ATELIER FINANCE

Startups

[email protected]

02 880 79 55

www.financecoach24.com

Martin van Wunnik

19.3.16 Finance workshop @ustart

Economy & Finance

Transcript of 19.3.16 Finance workshop @ustart