July 10, 2014, Jana Scharfschwerdt, Interim CFO of Somea People Partners, led a workshop for BSA teams on developing their financial plans. More slideshares from Jana: http://www.slideshare.net/scharfschwerdt More information about the company: http://www.someapartners.de/

1. Workshop: Business Modelling & Finance
Berlin Startup Academy, 10.07.2014 - Jana Scharfschwerdt

2. j.scharfschwerdt@someapartners.de
2JScharfschwerdt
A good financial model
Fundraising – when and where?
Alternatives of investments

3. j.scharfschwerdt@someapartners.de
3JScharfschwerdt
Proof-of-Concept
Business Angels
Financing options
Accelerator / Crowdfunding
Venture Capital
Crowdinvesting
Incubator
Bank loan
Idea
Proof of
Concept
Realisation
Scaling
Product develop.
Finding/Testing a
business model
1st customers
Product improve-
ments
Product / Market
Fit
Brainstorming
and team building
Realize revenues
Roll out model
Install processes,
standards and
projects
Optimize processes
Expansion
Internationalisation
Startup/Early Stage
Later Stage
Analysis
Seed
Pre-seed
...is a great start for fundraising

4. j.scharfschwerdt@someapartners.de
4JScharfschwerdt
How do Angel investors click
VC investors
§ Will want some control (voting,
board, veto)
§ Invests usually start at 500K, can
provide Series A/B
§ Will want to own 20-30%
§ Very actively engaged
§ Can add tremendous value an be
great business partners
§ Can take a lot longer until signing
§ Typically rational actors,
commercially driven, but if
inexperienced, he can be a total mess
Angel investors
§ Contribution over control
§ Usually engaged (often a hobby,
sometimes a personal mission)
§ Can be great experienced mentors
with a valuable network
§ Quick in decisions, on a personal
level
§ Typically rational, but if
unexperienced: Naive irrational
§ Investment 200 – 300 K max.
§ Will want to own 1-20%
© Franck Boston - Fotolia.com

5. j.scharfschwerdt@someapartners.de
5JScharfschwerdt
Investment criteria
Intangible things investors like to see:
§ An ability to recruit and retain a great
team, partners
§ Interpersonal chemistry
§ Good sustainable story: its a movie, not
snapshot
§ Somebody else committed?
Tangible things investors like to see
§ Very big market (> $500m)
§ Unfair advantage (why you? why now?)
§ Attractive business model (recurring,
high gross margin)
§ Unique technology or business model
approach
Investment criteria
© redhorst - Fotolia

6. j.scharfschwerdt@someapartners.de
6JScharfschwerdt
Which investor would be best for you
§ How much money do I need?
§ Where do I need network?
§ Synergies with existing investments?
§ Industry or product experience?
§ Will I expand internationally rather early?
§ Reputation and brand support
§ How many rounds do I think will be necessary?
§ What would be the paths to exit?
§ Strategic partner – Corporate VC
§ Experience with IPO
§ Relevant industry contacts (trade sales)
© Kitty - Fotolia

7. j.scharfschwerdt@someapartners.de
7JScharfschwerdt
Scoping out the firm - Which documents to provide?
1st things first
§ Financial planning
§ Assumptions
§ P+L
§ Cash-flow statement
§ Time Span: Monthly until break even (at least 1st year) , ideally 5 years projections
§ Current Cap Table showing pre and post money holdings
§ Investor‘s Deck
§ 10 page slide deck (a complete doc usually only for banks)
§ Well designed and free of mistakes
§ Keep it simple: they’re meant to be presented, so don’t include all text
§ Support info with charts and graphs
§ Imaging your own attantion span
§ Make the audience nod on every slide
§ Tell a story that is clear and exciting
© Rudie – Fotolia

8. j.scharfschwerdt@someapartners.de
8JScharfschwerdt
Investment criteria § YOUR business model
§ Subscription, listings, market places, do
you pile up physical stock?
§ Cashflow = earnings ?
§ Where does the money come from and
where do you invest
§ Metrics to watch
§ Different sources of financing and is
tailored to receiver
§ Who and how will you be using it
internally ?
A clean and clear model
shows....

9. j.scharfschwerdt@someapartners.de
9JScharfschwerdt
Please avoid to be kicked out, so don‘t ...
§ Build it too complex and confusing
§ 5+ sheets
§ Linking cells can not be followed
§ Forget to mirror the business model
§ Make it static, so the investor can‘t play with assumptions
§ Content that conveys the wrong message:
§ Liablibities that drag cash out of the firm
§ High founder‘s salary
§ Sending it as PDF or only on NDA

10. j.scharfschwerdt@someapartners.de
10JScharfschwerdt
Investment criteria
Other alternative
investments
© redhorst - Fotolia
Convertible loan: A loan today will be converted into stocks later
Crowdinvesting: Mostly patriarchic subordinate loan
Advisory shares

11. j.scharfschwerdt@someapartners.de
11JScharfschwerdt
Who is ready for funding?
Master background © Aleksandr Bryliaev / Fotolia
Thx for joining
www.someapartners.de