Start-Up Guide for the Technopreneur, + Website: Financial Planning, Decision Making and Negotiating from Incubation to Exit

305 Pages·2013·1.882 MB·English

by  Shelters, David

bafter 23November2012;16:26:34
Start-Up Guide for
the Technopreneur
ffirs 23November2012;12:37:51
ffirs 23November2012;12:37:51
Start-Up Guide for
the Technopreneur
Financial Planning, Decision
Making, and Negotiating from
Incubation to Exit
DAVID SHELTERS
John Wiley & Sons Singapore Pte. Ltd.
ffirs 23November2012;12:37:51
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ISBN978-1-118-51847-2(Hardcover)
ISBN978-1-118-51849-6(ePDF)
ISBN978-1-118-51848-9(Mobi)
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ffirs 23November2012;12:37:51
To the world’s best parents:
Dennis and Donna Shelters
ffirs 23November2012;12:37:51
ffirs 23November2012;12:37:51
Contents
Preface xiii
Acknowledgments xvii
CHAPTER 1 Finance for Start-Ups 101 1
Fundraising Stages 1
PrefundingPeriod 2
SeedFundingStage 3
SeriesAFundingStage 3
SeriesBFundingStage 5
Risk/Return 5
Types of Funding 7
PrivateEquity 7
DebtFunding 8
AlternativeTypesofFunding 9
PublicFunding 12
Incubator/AcceleratorPrograms 13
Capital Structure 13
Intellectual Property 17
Valuation 19
Asset-BasedValuationModels 20
ProForma(cid:2)BasedValuationModels 20
Comparable-BasedValuationModels 21
Strategic-BasedValuation 22
Exit Strategy 23
Summary 24
vii
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viii Contents
CHAPTER 2 Know Your Investors 27
KYI #1: Their Primary Objective Is to Make Money 27
KYI #2: There Are Many Types of Investors, Each
with Different Expectations and Capabilities 30
TypesofInvestors 30
InvestmentCriteria 35
KYI #3: Prospective Investors Are Looking for
Success Traits 37
SkinintheGame 38
Innovation 39
DefinedTargetMarket 39
ValueProposition 40
CommercialViability 41
RiskMitigationFactors 42
BurnRates 43
StrengthofManagement 43
UseofFunds 44
Traction 45
KYI #4: Money Is Not Enough 47
KnowtheSpace 48
NonfinancialAdvantages 49
AlignmentofInterests 49
IssuesofControl 51
Summary 56
CHAPTER 3 Business Planning from a Strategic Financial Perspective 57
Value of a Business Plan 57
Composition of a Business Plan 59
ExecutiveSummary 60
DefinedProblemandSolution 61
Product/Service 63
ValueProposition 63
MarketingPlan 65
ManagementTeam 72
StrategicPartners 74
OperationalandExpansionPlan 76
CompanyObjectives 78
CurrentPositioningandTraction 80
RiskFactors 81
Financials 84
ExitStrategy 90
Business Plan Customization 91
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